GIFT  OF 


IL- 


STATE  OF  IOWA 

/        M 

LAWS  RELATING  TO 

NSURANCE 


ANNOTATED 


ALSO  TO 


Corporations    for    Pecuniary    Profit 


AND 


Workmen's    Compensation 


1921 


A.  C.  SAVAGE 

Commissioner  of  Insurance 


Compiled  by 
R.  N.  LYNCH 

Policy  Examiner 


1^1 -yf 


The  Code  of  Iowa  is  copyrighted  and  the  statutes  herein  contained  are 
reprinted  by  authority  of  the  Executive  Council  as  by  law  provided. 


INSURANCE  LAW 

Islotc — Sections  in  this  compilation  bear  the  section  numbers  of  the 
Code  of  1897  or  the  Supplement  of  the  Code  of  19i;'>  or  the  Supplemental 
Supplement  to  the  Code  of  1915,  whichever  is  applicable,  or  the  section 
and  chapter  number  and  number  of  the  General  Assembly  which  passed 
the  act.  Section  numbers  of  the  proiposed  Compiled  Code  appear  directly 
after  the  present  code  section  number,  or  section  and  chapter  of  the 
General  Assembly. 

Much  of  the  law  relative  to  insurance  passed  by  the  37th,  o8th  and 
.S9th  General  Assembly  neither  repealed  nor  amended  present  sections 
of  the  then  existing  law,  but  in  numerous  instances  added  new  matter 
thereto.  Such  sections  and  chapters  have  been  inserted  in  various  parts 
of  this  compilation,  wherever  the  same  seem  to  be  most  applicable. 
Such  sections  and  chapters  have  no  code  section  numbers  and  conse- 
quently are  indexed  by  page  number  in  the  index. 

Sections  of  the  Compiled  Code  are  not  in  numerical  order  since  it 
was  necessary  to  follow  the  arrangement  of  our  existing  law  and  not 
the  proposed  arrangement  of  the  Code  Commission. 


4933i">5 


Table    of    Contents 


INSURANCE  LAWS. 

Department  of  Insurance,  Ch.  3A,  Page  1. 

Insurance  Other  Than  Life,   Ch.  4,  Page  5. 

State  and  County  Mutual  Associations,  Ch.   5,   Page  61. 

Life  Insurance  Companies,  Ch.  6,  Page  68. 

Assessment  Life,  Health  and  Accident  Associations,  Ch.  7,  Page  80. 

Provisions  Applicable  to  Life  Insurance  Companies  and  Associations, 

Ch.  8,  Page  93. 
Examination  of  Companies,   Ch.  8A,  Page   106. 

Consolidation,  Reinsurance  Agents,  Proxies,  etc.,  Ch.  8B,  Page  110. 
Fraternal  Orders  or  Societies,  Ch.  9,  Page  114. 

Reciprocal    Exchanges    and    Miscellaneous    Provisions,    Miscellaneous 
Sections,  Page  133. 

APPENDIX. 

Iowa  Short  Rate  Tables,   Page   148. 

Forms  for  Articles  of  Incorporation,  Amendments,  etc.,  Page  150. 
Law  of  Corporations  for  Pecuniary  Profit,  Page  157. 
Workmen's  Compensation  Law,  Page  185. 

INDEX. 

Insurance  Laws,  Page  218. 


»  «      t    ■>  t 


INSURANCE  LAW  OF  IOWA 


CHAPTER  3-A,  TITLE  IX,  CODE. 

COMMISSIONER  OF  INSURANCE  AND   DEPARTMENT   OF 

INSURANCE. 

Section  1683-r  (0.  0.  5460).  Appointment  by  governor — con- 
firmation by  senate — term — bond — compensation.  That  there  is 
hereby  created  and  established  a  department  to  be  known  as  the 
insurance  department  of  Iowa.  The  chief  officer  of  said  depart- 
ment shall  be  styled  "commissioner  of  insurance,"  and  shall  be 
appointed  by  the  governor  on  or  before  the  first  day  of  July, 
nineteen  hundred  fourteen,  said  officer  to  serve  until  February 
first,  nineteen  hundred  fifteen.  On  or  before  the  date  of  the 
expiration  of  the  term  of  ofiice  of  the  commissioner  hereby  pro- 
vided for,  the  governor  shall  nominate,  and  with  the  consent  of 
two-thirds  of  the  members  of  the  senate  in  executive  session,  ap- 
point a  person  for  commissioner,  who  shall  be  selected  solely 
with  regard  to  his  qualifications  and  fitness  to  discharge  the 
duties  of  this  position.  No  nomination  shall  be  considered  by 
the  senate  until  the  same  shall  have  been  referred  to  a  committee 
of  five,  not  more  than  three  of  whom  shall  belong  to  the  same 
political  party,  to  be  appointed  by  the  president  of  the  senate 
without  formality  of  a  motion,  which  committee  shall  report  to 
the  senate  in  executive  session,  which  report  shall  be  made  at 
any  time  when  called  for  by  the  senate.  The  consideration  of 
nominations  by  the  senate  shall  not  be  had  on  the  same  legisla- 
tive day  that  the  nominations  are  so  referred.  Subsequent  ap- 
pontments  shall  be  made  as  above  provided  and,  except  to  fill 
vacanies,  shall  be  .for  a  period  of  four  years.  He  shall  be  sub- 
ject to  removal  only  under  and  according  to  the  provisions  of 
chapter  seventy-eight  of  the  acts  of  the  thirty-third  general 
assemby,  as  amended.  The  governor  shall  fill  as  in  the  first  in- 
stance any  vacancy  which  may  arise  in  this  office.  Before  en- 
tering upon  the  discharge  of  the  duties  of  his  office,  the  commis- 
sioner of  insurance  shall  give  a  bond  in  the  penal  sum  of  twenty- 
five  thousand  dollars,  conditioned  as  provided  for  in  section  eleven 
hundred  eighty-three  of  the  code,  the  same  to  be  approved  by 
the  executive  council  and  filed  in  the  ofiice  of  the  secretary  of 
state.     [39  G.  A.,  ch.  209,  §  15;  35  G.  A.,  ch.  146,  §  1.] 

Sec.   1683-rl    (C.   0.   5461).     Office — equipment  and  supplies. 

The  executive  council  shall  provide  the  insurance  department  of 
Iowa  with  suitable  quarters  at  the  seat  of  government  and  shall 
furnish  said  department  Avith  furniture,  books,  supplies,  print- 
ing and  stationery  necessary  to  carry  out  the  provisions  of  this 
act.  All  desks,  chairs,  filing  cases  and  other  furniture,  and  all 
books,  papers,  records  and  securities  of  whatsoever  kind,  and 


.''2 1  y'  • ,  *  :  J  . .  ?  .'^* ',  '-INSURANCE  DEPARTMENT        Ch.  3-A,  T.  IX 


all  other  property  of  everj"  character  now  in  the  office  of  the 
auditor  of  state  and  relating  to  or  connected  with  the  business 
and  supervision  of  insurance  in  this  state  shall  be  transferred, 
delivered  and  surrendered  to  the  commissioner  of  insurance  upon 
the  second  secular  day  of  January,  nineteen  hundred  fifteen.  [35 
G.  A.,  ch.  146,  §  2.] 

Sec.  1683-r2  (C.  C.  5462).  Deputy — bond — examiners — assist- 
ants— clerks — compensation.  The  commissioner  of  insurance  is 
hereb}'  directed  to  appoint  a  deputy  commissioner  to  assist  him 
in  his  work,  who  shall  serve  during  the  pleasure  of  the  com- 
missioner of  insurance.  Before  entering  upon  the  duties  of  his 
office,  the  deputy  commissioner  shall  give  a  bond  in  the  penal 
sum  of  ten  thousand  dollars  conditioned  as  provided  in  section 
eleven  hundred  eighty-three  of  the  code,  the  same  to  be  approved 
by  the  executive  council  and  filed  with  the  secretary  of  state. 
The  commissioner  of  insurance  is  also  empowered  and  directed 
to  appoint  such  other  clerks  and  assistants  as  shall  be  needed 
in  the  performance  of  the  duties  of  his  office;  and  he  may  con- 
tract such  expenses  as  may  be  necessary  in  the  performance 
of  ]iis  official  duties,  including  all  actual  and  necessary  ex- 
peiises  incurred  in  attendiug  meetings  of  the  insurance  com- 
missioners and  sucli  other  expense  as  shall  be  approved  by  the 
executive  council;  but  the  total  amount  to  be  so  expended  for 
such  contingent  expenses  shall  not  exceed  the  sum  of  ten  hun- 
dred dollars  annually ;  and  there  is  hereby  appropriated  out  of 
any  funds  in  the  state  treasury  not  otherwise  approi)riated  two 
thousand  dollars  annually  or  so  much  thereof  as  may  be  neces- 
sary to  meet  the  expenses  thus  incurred.  All  salaries  of  addi- 
tional clerks  and  assistants  herein  provided  for  shall  be  paid  in 
the  same  manner  as  are  the  salaries  of  other  state  officers  out 
of  the  general  revenues  of  the  state  and  on  the  first  day  of  each 
month  all  such  salaries  and  other  expenses  as  are  indicated  here- 
in shall  be  paid  by  warrant  drawn  bv  the  auditor  of  state  upon 
the  treasurer  of  state.  [39  G.  A.,  ch.  209,  ^  16;  35  G.  A.,  ch. 
146,  §  3.] 

CHAPTER  224  39TH  G.  A.   (0.  C.  5462-al  TO  a-3) 

AN  ACT  to  prevent  fraud  in  the  organization  of  Iowa  insurance  corpora- 
tions, and  the  sale  and  disposition  of  the  stock  and  other  •securities 
of  insurance  corporations  within  the  state  of  Iowa,  by  placing  the 
supervision  of  such  organization  and  sale  under  the  control  of  the 
commissioner  of  insurance,  fixing  the  penalty  for  violating  the 
provisions  of  this  act,  and  providing  for  an  appeal  from  the  com- 
missioner of  insurance. 

Be  It  Enacted  By  the  General  Assembly  of  the  State  of  Iowa : 

Section  1.  The  commissioner  of  Insurance  is  hereby  given 
supervision  over  the  organization  of  domestic  insurance  corpora- 
tions, and  over  all  transactions  leading  up  to  the  organization 
of  such  corporations,  and  also  over  the  sale  in  the  state  of  Iowa, 


Ch.  3-A,  T.  IX  INSURANCE   DEPARTMENT  3 

ol'  all  stock,  coi'tificatcs  or  other  evidences  of  iiileresl,  eillier 
by  (lomestic  or  I'or'eij^ii  insui'aiice  coin[)anies  or  orgaiiizutioiis  pro- 
posing to  engager  in  any  insurance  business.  Neither  the  stock 
in  an  insurance  coin])any  or  the  nu^nibership  in  an  insurance 
association  now  or  hereafter  in  x^rocess  of  organization  shall  be 
sold  or  solicited  until  such  company  and  association,  and  the 
promoters  thereof,  shall  have  first  complied  with  all  of  the  statu- 
tory provisions  regulating  the  organization  of  such  companies 
and  associations,  and  also  have  secured  from  the  commissioner 
of  insurance  a  certificate  of  compliance  indicating  full  compli- 
ance with  the  provisions  of  this  act.  Before  the  commissioner 
of  insurance  shall  issue  such  certificate  of  compliance,  he  shall 
first  be  satisfied  with  the  general  plan  of  such  organization  and 
the  character  of  the  advertising  to  be  used;  he  shall  also  fix  the 
time  within  which  such  organization  shall  be  completed;  he  shall 
also  prescribe  the  method  of  keeping  books  and  accounts  of  such 
corporation  and  those  of  fiscal  agents.  The  maximum  promotion 
expense  which  may  be  incurred,  which  shall  in  no  case  exceed 
fifteen  (15)  per  cent  of  the  subscription  price  of  said  stock  pro- 
viding that  an  additional  two  and  one-half  per  cent  (21/2%) 
of  the  subscription  price  of  said  stock  may  be  used  by  the 
company  for  office  expense  but  no  portion  of  such  amount  shall 
be  used  in  the  payment  of  salaries  for  officers  and  directors 
before  the  issuance  l)y  the  commissioner  of  iiisurance  of  authority 
to  transact  an  insurance  business.  The  commissioner  of  insur- 
ance shall  have  power  to  regulate  all  other  matters  in  Connec- 
tion with  the  organization  of  such  domestic  corporations,  and  tlie 
sale  of  stock  or  the  issuing  of  certificates  by  all  insurance  cor- 
porations within  the  state  of  Iowa,  to  the  end  that  fraud  may  be 
prevented  in  the  organization  of  such  companies  and  the  sale  of 
their  stocks  and  securities.  The  provisions  of  tliis  act  shall 
apply  to  insurance  corporations  now  organizing  or  selling  thcii' 
stocks  and  securities  within  the  state  of  Iowa. 

Sec.  2.  Any  person,  proOnoter,  firm,  association,  company  or 
corporation  coming  within  the  provision  of  this  act,  who  shall 
fail  to  comply  with  the  provisions  of  this  act,  or  with  any  order 
of  the  commissioner  of  insurance  made  hereunder,  or  who  shall 
otherwise  neglect  or  refuse  to  comply  with  any  of  such  require- 
m.ents,  shall  be  guilty  of  a  misdemeanoi',  and  uj^on  conviction 
thereof  shall  be  fined  not  to  exceed  one  thousand  dollars  and  by 
imprisonment  in  the  county  jail  not  to  exceed  six  months.  Those 
guilty  of  violating  the  provisions  of  this  act  shall,  in  addition  to 
the  criminal  punishment  otherwise  imposed  in  this  act,  be  liable 
to  a  penalty  in  the  amount  of  corporation  stock  vrrongfully  sold 
in  any  insurance  corporati(«^n  in  violation  of  this  act,  and  said 
penalty  may  be  collected  by  civil  suits  brought  by  and  in  the 
name  of  the  several  purchasers  of  such  stock,  instituted  in  any 
court  of  competent  jurisdiction.  Any  insurance  corporation  sell- 
ing stock  or  soliciting  menibei-shij^s  ^vithout  fii-sl   (Mnnplying  A\-i1h 


4  INSURANCE   DEPARTMENT  Ch.  3-A,  T.  iX 

the  provisions  of  this  act,  shall  not  be  granted  a  certificate  of 
authority  to  transact  business  within  the  state  of  Iowa  from  the 
commissioner  of  insurance. 

Sec.  3.  Any  person,  promoter,  firm,  association,  company  or 
corporation  aggrieved  by  any  order  made  by  the  commissioner  of 
insurance  under  the  provisions  of  this  act,  shall  have  the  right 
to  appeal  to  the  district  court  at  the  seat  of  government,  by  the 
service  of  a  written  notice  of  appeal  on  the  commissioner  of 
insurance  and  the  attorney  general;  and  thereupon  the  cause  may 
be  docketed  and  the  case  may  be  tried  in  the  district  court  as  a 
special  equitable  action  by  the  filing  of  such  transcript  and  such 
pleadings  as  the  court  may  prescribe  in  order  that  an  intelligent 
hearing  may  be  had  and  a  just  decision  rendered  thereon  free 
from  am'-  technical  objection  or  irregularities  in  the  matter  of 
procedure  or  the  introduction  of  evidence. 

Sec.  1683-r3  (C.  C.  5463).    Powers  and  duties  of  commissioner. 

The  commissioner  of  insurance  shall  be  the  head  of  the  insurance 
department  of  Iowa  and  shall  have  general  control,  supervision 
and  direction  of  all  insurance  business  transacted  in  the  state  of 
Iowa  and  shall  be  charged  with  the  execution  of  the  laws  of 
this  state  relating  to  insurance;  and  all  powers  now  vested  in 
and  all  duties  imposed  upon  the  auditor  of  this  state  relating  in 
any  way  to  insurance  matters,  shall,  from  and  after  the  taking 
effect  of  this  act,  be  vested  in  and  made  incumbent  upon  the  com- 
missioner of  insurance  herein  provided  for.  [35  G.  A.,  ch.  146,  §  4.] 

Commissioner  of  insurance  authorized  to  accept  service  of  process  on 
non-resident  insurance  companies  where  suit  is  brought  by  non-resident 
of  Iowa.  The  courts  in  dealing  with  litigants  know  neither  resident  nor 
non-resident.    Flynn  v.  Western  Mutual  Life  Assn.,  171  N.  W.  711. 

Failure  of  non-resident  company  to  comply  with  section  1808  of  code 
cannot  be  pled  in  its  defense  to  prove  lack  of  notice  when  notice  has 
been  served  on  commissioner.  Companies  doing  business  in  state 
presumed  to  comply  with  law.  Flynn  v.  Western  Mutual  Life  Assn.,  171 
N.  W.  711. 

The  law  making  power  may  delegate  to  ministerial  officers  the  right 
to  determine  whether  conditions  have  been  complied  with  as  a  condition 
precedent  to  issuing  licenses.  Legislature  may  delegate  to  officers  certain 
powers  somewhat  judicial  in  their  nature  in  the  control  and  manage- 
ment of  business.  This  power  may  be  both  discretionary  and  judicial. 
Held  that  commissioner  has  power  to  make  uniform  rulings.  Noble  v. 
English,  183  Iowa,  93. 

Sec.  1683-r4  (C.  0.  5464).  Documents  and  records — auditor 
shall  deliver.  All  books,  records,  files,  documents,  reports,  and 
securities  and  all  papers  of  every  kind  and  character  relating  to 
the  business  of  insurance  and  now  enjoined  and  required  by  law  to 
be  delivered  to  or  to  be  filed  or  be  deposited  with  the  auditor  of 
state  shall,  from  and  after  the  taking  effect  of  this  act,  be  deliv- 
ered to  and  filed  or  deposited  with  the  said  commissioner  of  in- 
surance.    [35  G.  A.,  ch.  146,  §  5.] 


Ch.  4,T.  IX  INSURANCE  OTHER  THAN  LIFE  5 

Sec.  1683-r5  (C.  C.  5467).  Fees.  All  fees  and  charges  of  every 
character  whatsoever  which  are  now  required  by  law  to  be  paid 
to  the  auditor  of  state  by  insurance  companies  and  associations 
shall  from  and  after  the  taking  effect  of  this  act  be  payable  to 
the  insurance  commissioner  whose  duty  it  shall  be  to  account  for 
and  pay  over  the  same  to  the  treasurer  of  state  at  the  time  and  in 
the  manner  as  now  provided  for  by  law  for  the  auditor  of  state. 
[35  G.  A.,  ch.  146,  §  6.] 

Sec.  1683-r6.  Acts  in  conflict  repealed.  All  acts  or  parts  of 
acts  in  so  far  as  they  are  in  conflict  herewith  are  hereby  re- 
pealed.    [35  G.  A.,  ch.  146,  §  7.] 


CHAPTER  4,  TITLE  IX,  CODE. 

INSURANCE    OTHER    THAN    LIFE. 

Section  1684  (0.0.  5598).  Proceedings  for  incorporation.  Cor- 
porations formed  for  the  purpose  of  insurance,  other  than  life  in- 
surance, shall  be  governed  by  the  provisions  of  chapter  one  of  this 
title,  except  as  modified  by  the  provisions  of  this  chapter.  [C. 
'73,  §  1122.] 

Number  1607;  Powers  1609;  Procedure  1610;  Corporate  existance  com- 
mences 1614;  Duration  1618. 

Sec.  1685  (0.  0.  5599).  Articles — approval.  Each  such  or- 
ganization shall  present  to  the  commissioner  of  insurance  it^  ar- 
ticles of  incorporation,  which  shall  show  its  name,  objects,  loca- 
tion of  its  principal  place  of  business  and  amount  of  its  capital 
stock,  who  shall  submit  it  to  the  attorney-general  for  examina- 
tion, and  if  found  by  him  to  be  in  accordance  with  the  provis- 
ions of  this  title,  the  laws  of  the  United  States,  and  the  consti- 
tution and  laws  of  the  state,  he  shall  certify  such  fact  thereon 
and  return  the  same  to  the  commissioner  of  insurance,  and  no  ar- 
ticles shall  be  approved  by  the  commissioner  of  insurance  or  re- 
corded unless  accompanied  with  such  certificate.     (Same.) 

Life  1768-85,  Fraternals  1832. 

Sec.  1686  (0.  0.  5600).  Oertificate — recording.  If  the  commis- 
sioner of  insurance  approves  them,  he  shall  so  certify,  and  the 
articles  with  the  certificates  of  approval  shall  be  recorded  in  the 
office  of  the  secretary  of  state  as  articles  of  other  corporations 
are,  who  shall  indorse  thereon  his  certificate  thereof,  as  is  re- 
quired in  case  of  other  corporations  for  pecuniary  profit.  [C. 
73,   §   1123.] 

See.  1687  (0.  0.  5601).  Name.  If  the  commissioner  of  insur- 
ance finds  the  name  of  the  company  to  be  so  similar  to  one  al- 
ready appropriated  by  a  corporation  of  the  same  character  as  to 


6  INSURANCE  OTHER  THAN  LIFE  Cli.  4,  T.  IX 

be  likel}'  fo  mislead  the  public  or  to  cause  inconvenience,  he 
shall  refuse  his  certificate  to  its  articles  on  that  ground.  [C.  '73, 
§  1122.] 

Applicable  to  life  companies.     See  1786. 

An  insurance  company,  although  authorized  to  do  business  by  the 
auditor  of  state  [commissioner  of  insurance],  may  be  enjoined  from  using 
a  name  which  is  so  similar  to  the  name  of  a  foreign  insurance  company 
authorized  to  do  business  in  the  state  that  it  is  calculated  to  deceive  the 
public.  Atlas  Assurance  Co.  v.  Atlas  Insurance  Co.,  138-278. 

Sec.  1688  (C.  C.  5602).  Recording  with  commissioner  of  in- 
surance. The  article,  when  thus  certified  by  the  secretary  of 
state  as  recorded  in  his  office,  or  a  copy  thereof  certified  by  him 
as  such,  shall  be  filed  in  the  office  of  the  commissioner  of  insur- 
ance and  remain  therein.     [C.  "73,  §  1123.] 

Sec.  1689  (0.  C.  5603).  Kind  of  Company.  Every  domestic 
and  foreign  insurance  company  organized  and  doing  business 
under  this  chapter  shall  indicate  upon  the  first  page  of  every 
policy  and  renewal  receipt  that  the  policy  is  issued  b}^  a  mutual 
company  in  case  of  a  mutual  company,  and  by  a  stock  company 
in  case  of  a  stock  companv.  [37  G.  A.,  ch.  429,  §  1 ;  31  G.  A., 
ch.  68;  C.   '73,  §  1140.] 

Sec.  1690  (C.  C.  5604).  Stock  or  mutual.  No  company  shall 
be  organized  to  do  business  upon  both  stock  and  mutual  plans; 
nor  shall  a  company  organized  as  a  stock  company  do  business 
upon  the  plan  of  a  mutual  company ;  nor  shall  a  companj^  organ- 
ized upon  a  mutual  plan  do  business  or  take  risks  upon  the  stock 
plan.     [C.   '73,  §  1159.] 

A  mutual  company  cannot  issue  policies  upon  the  stock  plan,  and 
such  policies,  if  issued,  are  illegal  and  void.     Smith  v.  Sherman,  113-601, 

A  company  issuing  a  policy  on  the  stock  plan  will  be  presumed  to 
have  authority  to  issue  such  a  policy  until  the  contrary  appears.  One 
contracting  with  the  company  is  not  bound  to  know  at  his  peril  whether 
the  company  has  complied  with  the  condition  authorizing  it  to  do  a  stock 
insurance  business.  Harris-Emery  Co.  v.  Pitcairn,  122-595. 

"Where  a  company  organized  on  a  mutual  plan  issued  policies  of  insur- 
ance on  the  stock  plan,  held,  that  such  policies  were  invalid  and  that 
members  of  the  company  were  not  subject  to  assessment  for  losses  under 
such  policies.  Cory  v.  Sherman,  96-114. 

Sec.  1691  (C.  C.  5605).  Capital  required.  No  stock  company 
shall  be  incorporated  under  the  provisions  of  this  chapter  with 
a  less  capital  than  fifty  thousand,  nor  Jarger  than  one  million 
dollars,  as  may  be  specified  in  the  articles  of  incorporation,  which 
stock  shall  be  divided  into  shares  of  one  hundred  dollars  each, 
of  which  capital  not  less  than  twenty-five  per  cent,  and  in  no 
case  less  than  twenty-five  thousand  dollars,  shall  be  paid  up  in 
cash.  The  balance  of  the  capital  may  consist  in  the  bonds  or  notes 
of  solvent  stockholders.     [C.   '73,  §  1124.] 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  7 

Capital,  other  than  life,  1699,  ] 701-10-21-32-39.  Life  1769-72.  Stock 
1690-1713-34.    Applicable  1821e. 

See.  1692  (C.  C.  5606).  Mutuals  must  have  certificate— con- 
ditions. No  iiiutual  c!uinpaiiy  sJiall  issiu'  policies  or  transact  any 
business  of  insurance  unless  it  sliaii  hold  a  certificate  of  author- 
ity from  the  commissioner  of  insurance  authorizing  the  transac- 
tion of  such  business,  which  certificate  of  atithority  shall  not  be 
issued  until  and  unless  the  company  shall  comply  witli  the  fol- 
lowing- conditions: 

(1)  It  shall  hold  bona  fide  applicatioiis  for  insurance  upon 
which  it  shall  issue  simultaneously,  or  it  shall  have  in  force,  at 
least  two  hundred  policies  issued  to  at  least  two  hundred  mem- 
bers for  the  same  kind  of  insurance  upon  not  less  than  two  hun- 
dred sei:)arate  risks,  each  within  the  maximum  single  risk  de- 
scribed herein ;  provided,  tJiat  not  more  than  one  hundred  mem- 
bers shall  be  required  for  employer's  liability  and  workmen's 
compensation  insurance. 

(2)  The  maximum  single  risk  shall  not  exceed  twenty  j^er 
cent  of  the  admitted  assets,  or  three  times  the  average  risk,  or 
one  per  cent  of  the  insurance  in  force,  whichever  is  the  greater, 
any  reinsurance  taking  effect  simultaneously  with  the  policy  be- 
ing deducted  in  determining  such  maximum  single  risk. 

(3)  It  shall  have  collected  a  premium  upon  each  application, 
which  premium  shall  be  held  in  cash  or  securities  in  which  insur- 
aiice  companies  are  authorized  to  invest,  which  shall  be  equal,  in 
case  of  fire  insurance,  to  not  less  than  twice  the  maximum  sin- 
gle risk  assumed  subject  to  one  fire  not  less  than  ten  thousand 
dollars;  and  in  any  other  kind  of  instirance,  to  not  less  tlian 
five  times  the  maximum  single  risk  assumed;  and,  in  case  of 
employer's  liability  and  workmen's  compensation  insurance,  to 
not  less  than  fifty  thousand  dollars. 

(4)  For  the  purpose  of  transacting  employer's  liability  and 
workmen's  compensation  insurance,  the  applications  shall  cover 
not  less  than  one  thousand  five  hundred  employees,  each  such 
employe  being  considered  a  separate  risk  for  determining  the 
maximum  single  risk.     [37  G.  A.,  ch.  429,  §  2;  C.  '73,  §  1124.] 

Sec.  1693  (C.  C.  5607).  Members  of  mutuals.  Any  public  or 
private  corporation,  board  or  association  in  this  state,  or  else- 
where, may  make  applications,  enter  into  agreements  for  and 
hold  policies  in  any  such  mutual  insurance  company'.  Any 
officer,  stockholders,  trustee  or  local  representative  of  any  such 
corporation,  board,  association  or  estate  may  be  recognized  as 
acting  for  or  on  its  behalf  for  the  purpose  of  such  member- 
sliip,  but  shall  not  be  personally  liable  upon  such  contract  of  in- 
surance by  reason  of  acting  in  such  representative  capacity.  The 


8  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

right  of  any  corporation  organized  under  the  laws  of  this  state 
to  participate  as  a  member  of  any  such  mutual  insurance  com- 
pany is  hereby  declared  to  be  incidental  to  the  purpose  for 
which  such  corporation  is  organized  and  as  much  granted  as  the 
rights  and  powers  expressly  conferred.  [37  G.  A.,  ch.  429,  §  3; 
C.   73,  §  1124.] 

UNALLOCATED  SECTIONS  OP  CH.  429,  37TH  G.  A. 

Sec.  4  (C.  C.  5608).  Voting  power  of  mutual  members.  Every 
policyholder  of  such  mutual  company  shall  be  a  member  of  the 
company  and  shall  be  entitled  to  one  vote,  and  such  members 
may  vote  in  person  or  by  proxy  as  may  be  provided  in  the  by- 
laws.    [37  G.  A.,  ch.  429.] 

Sec.  5  (0.  C.  5609).    Maximum  premiums — mutual  companies. 

The  maximum  premium  payable  by  any  member  of  a  mutual 
company  shall  be  expressed  in  the  policy  and  in  the  application 
for  the  insurance.  Such  maximum  may  be  a  cash  premium  and 
an  additional  contingent  premium  not  less  than  the  cash  premium, 
or  may  be  solely  a  cash  premium,  which  premium  may  be  made 
payable  in  installments  or  regular  assessments.  No  policy  shall 
be  issued  for  a  cash  premium  without  an  additional  contingent 
premium  unless  the  company  has  a  surplus  which  is  not  less  in 
amount  than  the  capital  stock  required  of  domestic  stock  insur- 
ance companies  transacting  the  same  kind  of  insurance.  [37  G. 
A.,  ch.  429.] 

Sec.  6  (C.  C.  5610).  Unearned  premiums,  maintenance  in  mu- 
tuals.  Such  mutual  company  shall  maintain  unearned  premium 
and  other  reserves  separately  for  each  kind  of  insurance,  upon 
the  same  basis  as  that  required  of  domestic  insurance  companies 
transacting  the  same  kind  of  insurance;  provided,  that  any  re- 
serve for  losses  or  claims  based  upon  the  premium  income  shall 
be  computed  upon  the  net  premium  income,  after  deducting  any 
so  called  dividend  or  premium  returned  or  credited  to  the  mem- 
ber.    [37  G.  A.,  ch.  429.] 

Sec.  7  (C.  C.  5611).  Mutual  assessments — relief.  Any  such 
mutual  company  not  possessed  of  assets  at  least  equal  to  the  un- 
earned premium  reserve  and  other  liabilities  shall  make  an 
assessment  upon  its  members  liable  to  assessment  to  provide  for 
such  deficiency,  such  assessment  to  be  against  each  member  in 
proportion  to  such  liability  as  expressed  in  his  policy ;  provided, 
the  commissioner  may  by  written  order,  relieve  the  company  from 
an  assessment  or  other  proceedings  to  restore  such  assets  during 
the  time  fixed  in  such  order.     [37  G.  A.,  ch.  429.] 

Sec.  8  (C.  C.  5612).    Advancement  of  funds — conditions.    Any 

director,  officer  or  member  of  any  such  mutual  company,  or  any 
other  person,  may  advance  to  such  company,  any  sum  or  sums 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  9 

of  money  necessary  for  the  purpose  of  its  business  or  to  enable 
it  to  comply  with  any  of  the  requirements  of  the  law,  and  such 
moneys  and  such  interest  thereon  as  may  have  been  agreed  upon 
not  exceeding  the  maximum  statutory  rate  of  interest  shall  not 
be  a  liability  or  claim  against  the  company  or  any  of  its  assets, 
except  as  herein  provided  and  upon  approval  of  the  commissioner 
of  insurance  may  be  repaid,  but  only  out  of  the  surplus  earn- 
ings of  such  com2:)any.  No  commission  or  promotion  expenses 
shall  be  paid  in  connection  with  the  advance  of  any  such  money 
to  the  compan}^  The  amount  of  such  advance  shall  be  reported 
in  each  annual  statement.     [37  G.  A.,  ch.  429.] 

Sec.  9  (C.  C.  5613).  Additional  policy  provisions.  Such  mu- 
tual company  may  insert  in  any  form  of  policy  prescribed  by 
the  law  of  this  state  any  additional  provisions  or  conditions  re- 
quired by  its  plan  of  insurance  if  not  inconsistent  or  in  conflict 
with  any  law  of  this  state.     [37  G.  A.,  ch.  429.] 

Sec.  10  (C.  C.  5614).  Countersigning  policies.  Such  mutual 
company  shall  comply  with  the  provisions  of  any  law  applicable 
to  stock  insurance  companies  effecting  the  same  kind  of  insurance 
requiring  that  policies  be  countersigned  and  delivered  through 
a  resident  agent,  provided  that  this  requirement  shall  not  apply 
to  any  policy  of  such  mutual  company  on  which  no  commission 
shall  be  paid  to  any  local  agent.     [37  G.  A.,  ch.  429.] 

Sec.  11  (C.  C.  5615).    Existing  corporations  not  affected.    The 

provisions  of  this  chapter  shall  not  apply  to  any  company  or 
association  of  this  state  now  doing  business  whether  organized 
under  chapter  four  or  chapter  five,  title  nine  of  the  code,  as 
amended  unless  such  company  or  association  shall  so  elect  by 
resolution  of  its  board  of  directors  duly  certified  to  by  the  presi- 
dent and  secretary  and  filed  with  and  approved  by  the  commis- 
sioner, and  shall  further  amend  its  articles,  if  necessary,  to  per- 
mit full  compliance  with  this  chapter  and  to  include  such  addi- 
tional kind  or  kinds  of  insurance  as  such  company  or  association 
intends  to  transact.  On  the  filing  and  approval  of  such  resolu- 
tion and  on  making  such  amendment  if  required,  such  company 
may  be  authorized  to  transact  such  kinds  of  insurance  under 
this  chapter.     [37  G.  A.,  ch.  429.] 

Sec.  20  (C.  C.  5616).    Tax — computation.    For  the  purpose  of 

determining  the  basis  of  any  tax  upon  the  ^' gross  amount  of  pre- 
miums," or  ''gross  receipts  from  premiums,  assessments,  fees  and 
promisory  obligations,"  now  or  hereafter  imposed  upon  any  mu- 
tual fire  or  casualty  insurance  company  under  any  law  of  this 
state,  such  gross  amount  or  gross  receipts  shall  consist  of  the 
gross  premiums  or  receipts  for  direct  insurance,  without  includ- 
ing or  deducting  any  amounts  received  or  paid  for  reinsurance, 
but  with  such  other  deductions  as  provided  by  law,  and  in  ad- 


10  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

ditiou  deducting  any  so  called  dividend  or  return  of  savings  or 
gains  to  policA'liolers ;  provided,  that  as  to  any  deposits  or  de- 
l^osit  premiums  received  by  any  such  company,  the  taxable  pre- 
miums shall  be  the  portion  of  such  deposits  or  deposit  premiums 
earned  during  the  year  with  such  deductions  therefrom  as  pro- 
vided by  law.     [37  G.  A.  ch.  429.] 

Sec.  1694  (0.  C.  5617).  Organization — stock  or  mutual.  After 
approval  of  the  articles  of  incorporation,  as  provided  in  section 
sixteen  hundred  eighty-five  (1685),  and  upon  completing  the  pub- 
lications of  the  notice  of  incorporation  required  b.y  chapter  1  of 
this  title  and  filing  of  the  publisher's  affidavit  thereof  with  the  sec- 
retary of  state  together  with  the  articles  of  incorporation  as  re- 
quired in  this  chapter,  which  shall  be  certified  to  tlie  commis- 
sioner of  insurance  by  the  secretary  of  state;  and  upon  issuance 
of  his  certificate,  the  company  shall  have  the  legal  existence  as 
a  corporation,  and  the  persons  named  in  such  articles  as  incor- 
13orators,  or  a  majority  of  them,  are  authorized  to  open  books 
for  subscriptions  to  stock  companj^,  or  to  take  applications  aiul 
receive  premiums  for  insurance,  if  a  mutual  compam^,  at  such 
times  and  places  as  thej^  may  find  convenient,  and  to  keep  such 
books  open  until  the  full  amount  required  is  subscribed  or  taken. 
[37  G.  A.,  ch.  429,  §  12;  C.  '73,  §  1125.] 

Sec.  1695  (C.  C.  5618).  Directors.  The  affairs  of  a  compan.y 
organized  under  this  chapter  shall  be  managed  by  not  less  than 
five  and  not  more  than  twent.y-one  directors,  all  of  whom,  in 
case  of  a  stock  company,  shall  be  stockholders,  or  in  case  of  a 
mutual  company,  be  policyholders,  before  the  company  shall 
effect  insurance,  be  subscribers  for  stock  or  for  insurance  as  the 
case  may  be.  When  the  subscriptions  required  by  this  chapter 
for  stock,  if  a  stock  company,  or  for  insurance,  if  a  mutual  com- 
pany, shall  have  been  obtained,  the  incorporators  shall  give 
at  least  ten  days'  written  notice  by  mail  to  such  subscribers 
of  a  meeting  of  the  subscribers  for  the  election  of  directors  and 
such  meeting  shall  be  held  within  thirt}^  days  after  such  sub- 
scriptions have  been  completed  and  the  directors  then  elected 
shall  continue  in  office  until  their  successors  have  been  elected 
and  qualified.     [37  G.  A.,  ch.  429,  §  13;  C.  73,  §  1126.] 

Sec.  1696  (C.  C.  5619).  Annual  meetings.  The  annual  meet- 
ings for  the  election  of  directors  shall  be  held  during  the  month 
of  January,  at  such  time  as  the  bj-laws  of  the  company  may 
direct ;  but  if  for  any  cause  no  election  is  held,  or  there  is  a 
failure  to  elect  at  any  annual  meeting,  then  a  special  meeting 
for  that  purpose  shall  be  held  on  the  call  of  a  majority  of  the 
directors,  or  of  those  persons  holding  a  majority  of  the  stock, 
or  of  a  majority  of  policy  holders  if  a  mutual  company,  by  giv- 
ing thirty  days'  notice  thereof  in  some  newspaper  in  general 
circulation  in  the   county   in  which   the  principal   office   of   the 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  11 

company  is  located,  and  the  directors  chosen  at  any  such  annual 
or  special  meeting  shall  continue  in  office  until  the  next  annual 
meeting,  and  until  their  successors  are  elected  and  have  accepted. 
[C.  78,  §  1127.] 

Representation  1821v-w. 

Sec.  1697  (C.  0.  5620).     Powers  of  directors— president.     The 

directors  sliall  elect  by  ballot  from  their  own  numlx'r  a  president, 
and  fill  all  vacancies  occurring-  in  the  board  or  presidency  there- 
of; and  tlie  board  of  directors  thus  constituted,  or  a  majority  of 
tliem,  when,  convened  at  the  office  of  the  compaiiy,  shall  be  com- 
petent to  exercise  all  the  ])()wers  vested  in  them  by  tliis  chapter. 
[C.  73,  §  1128.] 

See.  1698  (C.  C.  5621).  Secretary  and  other  officers — by-laws 
— records.  The  board  of  directors  sliall  have  power  to  appoint  a 
secretary  and  any  other  officers  or  agents  necessary  for  trans- 
acting the  business  of  the  company,  paying  such  salaries  and 
taking  such  security  of  them  as  is  reasonable;  it  may  adopt  such 
by-laws  and  regulations  not  inconsistent  with  law  as  shall  appear 
to  them  necessary  for  the  regulation  and  conduct  of  the  business, 
and  shall  keep  full  and  correct  entries  of  their  transactions, 
which  shall  at  all  times  be  open  to  the  inspection  of  the  stock- 
holders if  a  stock  company,  or  policy  holders  if  a  mutual  com- 
pany, and  to, the  inspection  of  persons  invested  by  law  with  the 
right  thereof.      [C.   73,  §  1129.] 

While  members  of  a  mutual  company  may  be  bound  by  by-laws  adopted 
after  they  become  members,  nevertheless  the  terms  of  a  policy  of  insur- 
ance will  be  presumed  to  be  governed  by  the  by-laws  in  force  when  it  is 
issued,  and  not  to  be  affected  by  those  subsequently  adopted.  Farmers' 
Mut.  Hail  Ins.  v.  Slatteri/,  115-410. 

By-laws  duly  adopted,  but  not  posted  as  required  by  law,  are  valid  and 
controlling  as  to  all  persons  informed  of  their  existence,  the  posting  being 
required  for  the  sole  purpose  of  imparting  constructive  notice,  and  if  the 
existence  of  the  by-laws  is  expressly  recognized,  the  person  who  receives 
such  certificate  is  bound  thereby.  Fee  v.  National  Masonic  Ace.  Assn., 
110-271. 

The  directors  of  an  insurance  company  organized  under  this  chapter, 
whether  doing  business  under  the  ordinary  or  mutual  plan,  have  the 
right  to  ordain  and  establish  by-laws  and  regulations.  The  parties  may 
by  contract  mutually  agree  to  the  waiver  of  a  by-law.  Hoiidcck  v.  Mer- 
chants' and  Bankers'  Ins.  Co.,  115-410. 

Sec.  1699  (C.  C.  5622).  Funds  invested.  Any  company  or- 
ganized under  this  chapter  shall  invest  its  capital  and  funds  in 
the  folloAving  described  securities  and  no  other: 

1.  The  bonds  of  the  United  States. 

2.  The  bonds  of  the  state  or  any  other  state  when  such  bonds  are  at 
or  above  par. 

3.  Bonds  or  other  evidences  of  indebtedness  of  any  county,  city,  town 
or  school  district  within  the  state  or  any  other  state,  drainage  district 
bonds   of  this   state,   improvement   certificates   issued   by   any   municipal 


12  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


corporation  of  this  state,  such  certificates  being  a  first  lien  upon  real 
estate  withing  the  corporate  limits  of  the  municipality  issuing  the  same, 
where  such  bonds,  or  other  evidences  of  indebtedness  are  issued  by  au- 
thority of  and  according  to  law  and  bearing  interest. 

4.  Bonds  and  mortgages  and  other  interest  bearing  securities  being 
first  liens  upon  real  estate  within  this  state  or  any  other  state  worth  at 
least  double  the  amount  loaned  thereon  and  secured  thereby  exclusive  of 
improvements,  or  two  and  one-half  times  such  amount  including  the  im- 
provements thereon,  but  no  such  improvements  shall  be  considered  in 
estimating  the  value  unless  the  owner  shall  contract  to  keep  the  same 
insured  during  the  life  of  the  loan,  in  some  reliable  fir«  insurance  com- 
pany or  companies  authorized  to  do  business  in  the  state,  other  than  the 
company  making  the  investment,  in  a  sum  at  least  double  the  excess  of 
the  loan  above  one-half  the  value  of  the  ground  exclusive  of  the  improve- 
ments, the  insurance  to  be  made  payable  in  case  of  loss  to  the  company 
or  association  investing  its  funds,  as  its  interest  may  appear  at  the  time 
of  loss;  except  that  the  surplus  funds  may  be  invested  in  stocks  other 
than  bank  stock  or  in  bonds  or  other  evidences  of  indebtedness  of  any 
solvent  dividend  paying  corporation  organized  under  the  laws  of  any  of 
the  states,  or  the  United  States,  or  may  be  loaned  thereon  upon  pledge 
thereof,  at  not  exceeding  eighty  per  cent  of  their  current  market  value, 
but  no  investment  shall  be  made  in  the  companies'  own  stock.  [34  G.  A., 
ch.  18,  §  3;   33  G.  A.,  ch.  Ill,  §1;   C.  '73,  §  1130.] 

"While  as  between  the  state  and  the  company  the  investment  of  its 
surplus  in  bank  stock  may  be  unauthorized,  such  a  transaction  entered 
into  by  the  officers  for  the  purpose  of  avoiding  loss  to  the  company  may 
be  so  ratified  by  the  directors  in  taking  advantage  of  the  benefits  thereof 
as  to  estop  the  corporation  from  treating  the  transaction  as  ultra  vires. 
Fidelity  Ins.  Co.  v.  German  Sav.  Banlc,  127-591. 

Life  1778-91,  applicable  1806-7.    Fraternals  1839-1. 

See.  1700  (0.  C.  5623).  Financial  statements — examinations — 
certificate  of  authority.  After  complying  with  the  requirements 
of  the  preceding  sections,  the  company  shall  file  with  the  com- 
missioner of  insurance  a  satisfactory  detailed  statement  showing 
the  financial  condition  of  the  company,  including  all  transac- 
tions had  during  its  organization,  together  with  a  record  of  all 
moneys  received  and  disbursed,  a  list  of  the  stockholders,  the 
amount  of  stock  purchased  by  each,  and  the  price  paid,  and  such 
commissioner  maj^  appoint  in  writing  some  disinterested  person 
to  make  an  examination  and  if  it  shall  be  found  that  the  capital 
or  assets  herein  required  of  the  company  named,  according  to  the 
nature  of  the  business  proposed  to  be  transacted  by  such  company, 
have  been  paid  in,  and  are  now  possessed  by  it  in  money  or  such 
stock,  bonds  and  mortgages  as  are  required  by  the  preceding  sec- 
tions of  this  chapter,  he  shall  so  certify ;  but  if  the  examination 
is  made  by  another  than  the  commissioner,  the  certificate  shall  be 
by  him,  and  under  his  oath.  The  incorporators  or  officers  of 
any  such  company,  or  proposed  company,  shall  be  required  to 
state  to  the  commissioner  of  insurance  under  oath  that  the  capi- 
tal or  assets  exhibited  to  the  person  making  the  examination  are 
actually  and  in  good  faith  the  property  of  the  company  ex- 
amined, and  free  and  clear  of  anj^  lien  or  claim  on  the  part  of 
any  other  person.     The  certificate  of  examination  of  a  mutual 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  13 

company  shall  be  to  the  effect  that  it  has  received  and  has  in 
its  actual  possession  (a)  the  cash  premiums,  (b)  actual  con- 
tract of  insurance  upon  property,  belonging  to  the  signers 
thereof,  and  upon  which  the  insurance  applied  for  can  prop- 
erly be  issued,  (c)  other  securities  as  the  case  may  be,  to  the 
extent  and  value  hereinbefore  required.  The  incorporators  or 
officers  of  such  mutual  company  shall  file  the  statement  under 
oath  required  of  stock  companies.  The  certificate  and  state- 
ments above  contemplated  shall  be  filed  in  the  insurance  de- 
partment and  the  commissioner  of  insurance  shall  deliver  to 
the  company  a  copy  of  the  report  of  the  examination,  in  the 
event  one  is  made,  together  with  his  written  permission  for  it 
to  commence  the  business  proposed  in  its  articles  of  incorpora- 
tion, which  permission  shall  be  its  authority  to  commence  busi- 
ness and  issue  policies.  Such  certificate  of  authority  shall  ex- 
pire on  the  first  day  of  March  next  succeeding  its  issue,  and 
shall  be  renewed  annually  so  long  as  such  company  shall  trans- 
act business  in  accordance  with  the  requirements  of  law;  a 
copy  of  which  certificate,  when  certified  to  by  the  commissioner 
of  insurance,  shall  be  admissible  in  evidence  for  or  against  a 
company  with  the  same  effect  as  the  original.  [37  G.  A.,  ch.  429, 
§  14;  C.  '73,  §  1131.] 

See  also  1732-31-55.     Life  1777-1821a  to  g.     Fraternals  'l839b,  c. 

Sec.  1701  (C.  0.  5624).  Capital  increased.  When  the  directors 
of  a  stock  company  with  less  than  the  maximum  capital  allowed 
in  this  chapter  desire  to  increase  the  amount,  they  shall,  if  au- 
thorized by  the  holders  of  a  majority  of  the  stock  to  do  so,  file 
with  the  commissioner  of  insurance  an  amendment  of  its  articles 
authorizing  such  increase,  not  exceeding  the  maximum  authorized 
capital,  and  thereupon  shall  be  entitled  to  have  the  increased 
amount  of  capital  fixed  by  such  amendment,  and  the  examination 
of  securities  constituting  the  increased  capital  stock  shall  be 
made  in  the  same  manner  as  provided  for  the  original  capital 
stock.     [C.  '73,  §  1135.] 

Sec.  1702  (0.  0.  5625).  Dividends — ^reserve.  The  directors  or 
managers  of  a  stock  company  incorporated  under  the  laws  of 
this  state  shall  make  no  dividends,  except  from  the  profits  arising 
from  their  business,  and  in  estimating  the  profits,  a  reserve  for 
unearned  premiums  as  set  out  in  this  section,  also  a  reserve  for 
unpaid  losses,  expenses  and  taxes  which  have  been  incurred 
shall  be  set  up ;  and  there  shall  also  be  held  as  non-admitted 
assets  all  sums  due  the  corporation  on  bonds  and  mortgages, 
bonds,  stocks  and  book  account,  of  which  no  part  of  the  prin- 
cipal or  interest  thereon  has  been  paid  during  the  year  preced- 
ing such  estimate  of  profits,  and  upon  which  suit  for  foreclo- 
sure or  collection  has  not  been  commenced,  or  which,  after  judg- 
ment has  been  obtained  thereon,  shall  have  remained  more  thaj^ 


14  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

two  years  unsatisfied,  and  on  which  interest  has  not  been  paid ; 
and  such  judgment  with  the  interest  due  or  accrued  thereon 
and  remaining  unpaid,  shall  also  be  so  held.  Any  dividend  made 
contrary  to  these  provisions  shall  subject  the  compam^  making- 
it  to  forfeiture  of  its  franchise. 

The  policy  liability  of  any  com]3any  or  association,  transact- 
ing business  under  the  proA^isions  of  this  chapter,  and  the  amount 
such  company  or  association  shall  hold  as  a  reserve  for  un- 
earned premiums,  shall  be  computed  in  the  following  manner : 

On  all  policies  written  or  renewed  prior  to  January  1,  1922, 
there  shall  be  held  as  such  unearned  premium  reserve  an  amount 
equal  to  forty  (40)  per  cent  of  the  aggregate  gross  premiums 
written  in  all  policies  in  force,  less  deductions  for  reinsurance 
in  authorized  companies  or  associations. 

On  all  policies  written  or  renewed  on  and  after  January  ],  1922, 
and  running  one  (1)  year  or  less  from  date  of  i^olicy  or  last  re- 
newal thereof,  shall  be  held  as  such  unearned  premium  reserve 
an  amount  equal  to  fifty  (50)  per  cent  of  the  aggregate  gross 
premiums  Avritten  in  all  policies  in  force,  less  deductions  for 
reinsurance  in  authorized  companies  or  associations. 

On  all  policies  written  or  renewed  on  and  after  January  1,  1922, 
and  running  for  more  than  one  (1)  year,  and  not  exceeding  five 
(5)  years,  from  date  of  policy  or  last  renewal  thereof  there  shall 
be  held  as  such  unearned  premium  reserve  an  amount  of  the  ag- 
gregate gross  premiums  written  in  all  policies  in  force,  less  de- 
ductions for  reinsurance  in  authorized  companies  or  associations, 
computed  in   accordance  with   the   following  table: 

Terms  far  which  Reserve  for 

policy  was  written.  unearned  premium. 

Two  years 1st   year 3-4 

2nd  year 1-4 

Three  years 1st   year 5-6 

2nd  year 1-2 

3rd   year 1-6 

Four  year s 1st   year 7-8 

2nd  5^ear 5-8 

3rd  year 3-8 

4th   year 1-8 

Five  years 1st   year 9-10 

2nd  year 7-10 

3rd   year 1-2 

4th   year 3-10 

5th  year   1-10 

On  all  policies  written  or  renewed  on  and  after  January  1,  .1922, 
and  running  for  more  than  five  (5)  j-ears  from  date  of  policy  or 
last  renewal  thereof,  there  shall  be  held  as  such  unearned  pre- 
mium reserve  an  amount  of  the  aggregate  gross  premiums,  less 
deductions  for  reinsurance  in  authorized  companies  or  associa- 


Ch.  4,  T.  TX  INSURANCE  OTHER  THAN  LIFE  15 

lions  ('(juals  to  Hk^  ])ro  rata  uiK'anicd  prciiiiiin)  on  all  jjolicics  in 
t'oi-cc.  Tile  lenu  pro  i-aia  used  lierein  shall  he  sueh  proportion 
of  the  gross  premiums  on  policies  in  f'oree  as  th(;  numher  of 
mouths  unexpired  hears  to  the  total  num])er  of  months  for  which 
tlie  policy  was  written. 

On  all  policies  written  or  renewed  and  for  which  any  premium 
has  been  received  which  would  continue  a  policy  in  force  for  a 
period  beyond  tlie  term  for  which  it  was  written,  or  term  cov- 
ered b}^  last  renewal  thereof,  there  shall  be  held  as  such  unearned 
premium  reserve  an  amount  equal  to  one  liundred  (K)0)  per  cent 
of  such  premium  on  all  policies  in  force. 

Provided,  however,  that  mutual  companies  or  associations,  or- 
ganized, or  doing  business  under  this  chapter,  shall  hold  as  a 
reserve  for  unearned  premiums  an  amount  equal  to  at  least 
forty  (40)  per  cent  of  the  aggregate  gross  premiums  written 
in  all  policies  in  force  less  deductions  for  reinsurance  in  author- 
ized companies  or  associations.  [31)  (J.  A.,  ch.  190,  §  1  ;  ('.  '73,  § 
1136.] 

See  also  1714  sixth,  sub-div.  3. 

Sec.  1703  (C.  C.  5626).  May  own  real  estate.  No  company 
organized  under  this  chapter  shall  purchase,  hold  or  convex^  any 
real  estate,  save  for  the  purpose  and  in  the  manner  herein  set 
forth  : 

1.  Such  as  shall  be  required  for  the  transaction  of  its  business; 

2.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith  by  way  of 
security  for  loans  previously  contracted,  or  for  money  due; 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of  debts 
perviously  contracted  in  the  legitimate  business  of  the  company,  or  for 
money  due; 

4.  Such  as  shall  have  been  purchased  at  sales  upon  judgments,  decrees 
or  mortgages  obtained  or  made  for  such  debt,  or  obtained  by  redemption 
as  junior  judgment  creditor  or  mortgagee;  but  it  may  convey  real  estate 
which  shall  be  found  in  the  course  of  its  business  not  necessary  therefor, 
and  all  such  last  mentioned  real  estate  -shall  be  sold  and  conveyed  within 
three  years  after  the  same  has  been  determined  by  the  commissioner  of 
insurance,  unnecessary,  unless  the  company  shall  procure  a  certificate 
from  him  that  the  interest  of  the  company  will  materially  suffer  by  a 
forced  sale,  in  which  event  the  sale  may  be  postponed  for  such  period 
as  he  may  direct  in  such  certificate.     [C.  '73,  §   1137.] 

Life  companies  and  associations  1803.     Fraternals  1839k. 

Sec.  1709  (C.  C.  5627).  Kinds  of  Insurance — limitation  of  risk. 
1.  [Fire.]  Insure  houses,  buildings,  and  all  other  kinds  of 
property  against  loss  or  damage  b^^  fire,  lightning,  sprinkler, 
leakage,  or  other  casualty  incident  to  or  connected  with  fire, 
lightning,  cyclone,  tornado,  or  windstorm  hazards  and  to  insure 
growing  crops  against  destruction  l)y  hail ;  and  make  all  kinds 
of  insurance  on  goods,  merchandise,  moneys  and  securities  or 
other  property  in  the  course  of  transportation,  whether  on  land 


16  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

or  water  or  any  vessel  or  boat  wherever  the  same  may  be ;  and 
insure  against  loss  of  rents  or  use  of  buildings  when  such  loss 
or  use  is  caused  by  fire,  lightning,  windstorms,  cyclone  or  tor- 
nadoes; and  also  insure  glass  against  breakage.  [38  G.  A.,  ch. 
348,  §  1 ;  37  G.  A.,  ch.  428,  §  1 ;  35  G.  A.,  ch.  144,  §  1 ;  34  G.  A.,  ch. 
18,  §  4;  31  G.  A.,  ch.  72,  §§  1,  2;  C.  '73,    1132.] 

2.  [Fidelity.]  Insure  the  fidelity  of  persons  holding  places 
of  private  or  public  trust,  or  execute  as  surety  anj^  bond  or  other 
obligation  required  or  permitted  by  law  to  be  made,  given  or 
filed,  except  bonds  required  in  criminal  causes.  None  but  stock 
companies  shall  engage  in  fidelity  and  surety  business ;  and  insure 
the  maker,  drawer,  drawee  or  endorser  of  checks,  drafts,  bills 
of  exchange  or  other  commercial  paper  against  loss  by  reason 
of  any  alteration  of  such  instruments.  [38  G.  A.,  ch.  372,  S. 
1913,  §  1709.] 

3.  [Safe  deposits.]  Insure  the  safe  keeping  of  books,  papers, 
moneys,  stocks,  bonds  and  all  kinds  of  personal  property,  and 
receive  them  on  deposit.     [S.  1913,  §  1709;  C.  '73,  §  1132.] 

4.  [Live  stock.]  Insure  against  loss  or  damage  by  theft,  in- 
jury, sickness  or  death  of  animals  and  to  furnish  veterinary 
service.     [37  G.  A.,  ch.  429,  §  16 ;  31  G.  A.,  ch.  69;  C,  '73,  §  1132.] 

5.  [Casualties  classified.]  (a)  Insure  the  health  of  persons 
and  against  personal  injuries,  disablement  or  death  resulting  from 
traveling  or  general  accidents  by  land  or  water. 

(b)  Insure  against  liability  for  loss,  damage  or  expense  result- 
ing from  personal  injury  or  death  caused  by  error  or  negligence 
of  the  insured  in  the  practice  of  medicine,  surgery  or  dentistry, 
including  the  performance  of  surgical  operations,  or  in  the  pre- 
scribing or  dispensing  of  drugs  or  medicines,  or  for  loss  by  rea- 
son of  damages  in  other  respects,  for  which  loss,  damage  or  ex- 
pense the  insured  is  legally  liable ;  provided,  however,  that  any 
policy  issued  by  any  such  company  shall  contain  a  provision  so 
that  said  policy  shall  inure  to  the  benefit  of  any  person  obtain- 
ing a  judgment  against  the  insured  to  the  extent  of  the  insurance 
carried  and  for  the  purpose  for  which  the  insurance  was  issued. 

(c)  Insure  against  loss  or  damage  to  property  caused  by  the 
accidental  discharge  or  leakage  of  water  from  automatic  sprink- 
ler system.  •    .:| 

(d)  Insure  employers  against  loss  in  consequence  of  accidents 
or  casualties  of  any  kind  to  employes,  including  workmen's  com- 
pensation, or  other  persons,  or  to  propertj'  resulting  from  smy  act 
of  an  employe,  or  any  accident  or  casualty  to  persons  or  property, 
or  both,  occurring  in  or  connected  with  the  transaction  of  their 
business,  or  from  the  operation  of  any  machinery  connected  there- 
with. 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  17 

(e)  Insure  against  liability  for  loss  or  expense  arising  or  re- 
sulting from  accidents  occurring  by  reason  of  the  ownership,  main- 
tenance or  use  of  automobiles  or  other  conveyances,  resulting  in 
personal  injuries  or  death,  or  damage  to  property  belonging  to 
others,  or  both,  and  for  damages  to  assured 's  own  automobile 
when  sustained  through  collision  with  another  object. 

Provided  that  should  an  execution  on  a  judgment  against  the 
insured  be  returned  unsatisfied  in  an  action  by  a  person  who  is 
injured  or  whose  property  is  damaged,  when  such  owner  or  oper- 
ator has  insured  his  liability  for  such  personal  injury  or  damage, 
the  judgment  creditor  shall  have  a  right  of  action  against  the  in- 
surer to  the  same  extent  that  such  owner  or  operator  should  have 
enforced  his  claim  against  such  insurer  had  such  owner  or  opera- 
tor paid  such  judgment.  [38  G.  A.,  ch.  330  §  1  and  2 ;  37  G.  A., 
ch.  428,  §  2 ;  35  G.  A.,  ch.  143,  §  1 ;  31  G.  A.,  ch.  71,  §  1 ;  31  G.  A., 
ch.  70,  §  1 ;  29  G.  A.,  ch.  70,  §  1 ;  25  G.  A.,  ch.  32,  1 ;  24  G.  A., 
ch.  29,  §  1;  C.  '73,  §  1132.] 

Life  companies  may  write   1783d,  Associations  1784,  Fraternals  1822. 

An  association  organized  by  a  railroad  company  for  the  benefit  of  em- 
ployes who  participate  therein  by  payment  of  indemnity  in  case  of  acci- 
dent or  death  is  not  within  the  provisions  of  the  statutes  as  to  insurance. 
Maine  v.  Chicago  B.  &  Q.  Co.,  109-260. 

An  accident  within  the  meaning  of  a  policy  of  insurance  which  pro- 
vides that  the  injury  must  occur  "through  external,  violent,  and  acci- 
dental means,"  is  a  result,  the  inducing  cause  for  which  was  not  put  in 
motion  by  the  voluntary  and  unintentional  act  of  the  person  injured. 
Payne  v:  Frat.  Ace.  Assn.,  119  Iowa,  342. 

In  ordinary  usage,  "casualty"  is  commonly  applied  to  losses  and  in- 
juries which  happen  suddenly  and  unexpectedly,  not  in  the  usual  course 
of  events,  and  without  any  design  on  the  part  of  the  person  suffering  the 
injury,  although  the  result  is  brought  about  by  the  conscious  or  intended 
act  of  another.    Bankers'  Mut.  Cas.  Co.  v.  First  National  Bank,  131-456. 

Foreign  corporations  are  only  permitted  to  do  such  insurance  business 
in  this  state  as  is  prescribed  by  statute.  American  Fidelity  Co.  v.  Bleakley, 
157-442. 

6.  [Steam  boilers.]  Insure  against  loss  or  injury  to  person  or 
property,  or  both,  growing  out  of  explosion  or  rupture  of  steam 
boilers.     [S.  1913,  §  1709.] 

7.  [Burglary,  robbery,  theft.]  Any  insurance  company  or- 
ganized and  incorporated  on  the  stock  or  mutual  plan  may  in- 
sure against  loss  or  damage  resulting  from  burglary  or  robbery, 
or  attempt  thereat.  A  mutual  company  organized  under  this 
subdivision  shall  not  issue  any  policy  to  any  person,  firm,  or 
corporation  other  than  banks,  bankers,  loan  companies,  trust 
companies,  and  county  treasurers.  [37  G.  A.,  ch.  428,  §  3 ;  31 
G.  A.,  ch.  72,  §  1 ;  28  G.  A.,  ch.  60,  §  1.] 

8.  [Credit.]  Insure  or  guarantee  and  indemnify  merchants, 
traders  and  those  engaged  in  business  and  giving  credit  from 
loss  and  damage  by  reason   of  giving  and  extending  credit  to 


18  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

their  customers  and  those  dealing  with  them,  wliich  business  shall 
be  known  as  credit  insurance;  [29  (I.  A.,  ch.  71,  §  1.] 

9.  [Marine — Automobile — property  damage.]  Insure  vessels, 
freights,  goods,  merchandise,  specie,  bullion,  jewels,  profits,  com- 
mission, bank  notes,  bills  of  exchange  and  other  evidence  of  debt, 
bottomry  and  respondentia  interests  and  every  insurance 
appertaining  to  or  connected  with  marine  risks  of  transportation 
and  navigation,  and  make  insurance  upon  automobiles,  whether 
stationary  or  being  operated  under  their  own  power,  which  shall 
include  all  or  any  of  the  hazards  of  fire,  explosion,  transportation, 
collision,  loss  by  legal  liability  for  damage  to  property  resulting 
from  the  maintenance  and  use  of  automobiles,  and  loss  by  burg- 
lary or  theft  or  both,  but  shall  not  include  insurance  against  loss 
by  reason  of  bodily  injurv  to  the  person.  [38  G.  A.,  ch.  348  §  2; 
37  G.  A.,  ch.  428,  §  4;  33  G.  A.,  ch.  112,  §  2.] 

Only  such  insurance  is  authorized  as  is  specifically  defined  in  the  Code. 
Ame7^ican  Fidelity  Go.  v.  Bleakly  157  Iowa  442.  Cited  and  approved,  179 
Iowa  171  and  180  Iowa  618. 

Sec.  1710  (C.  C.  5628).  Kinds  of  Risks— Limitations.  No  com- 
pany authorized  to  transact  business  in  this  state  as  provided 
in  this  chapter,  shall  issue  policies  of  insurance  for  more  than 
one  of  the  nine  purposes  or  sub-divisions  enumerated  in  the  pre- 
ceding section,  except  as  herein  provided,  as  follows: 

(a)  Any  domestic  or  foreign  insurance  company  authorized 
in  this  state  to  do  the  business  specified  in  sub-division  one  of 
the  preceding  section,  may  in  addition  to  the  business  specified 
in  sub-division  one,  insure  against  the  casualties  specified  in  sub- 
division nine  of  the  preceding  section. 

(b)  Any  domestic  or  foreign  insurance  company  authorized 
in  thi-s  state  to  do  the  business  contemplated  hy  either  sub-divi- 
sions two  or  five,  may  in  addition  to  such  business  insure  against 
the  casualties  specified  in  sub-division  six  of  the  preceding  sec- 
tion, and  also  insure  against  theft,  larceny,  burglary  and  robbery, 
or  attempt  thereat. 

(c)  Any  domestic  or  foreign  company-  authorized  in  this  state 
to  transact  the  business  specified  in  sub-division  five  of  the  fore- 
going section,  if  it  is  possessed  of  a  paid  up  capital  of  five  hun- 
dred thousand  dollars,  may,  in  addition  to  insuring  against  the 
casualties  specified  in  sub-division  five,  transact  the  business  spe- 
cified in  sub-division  two  and  six  of  the  preceding  section  and 
insure  glass  against  breakage. 

(d)  Any  domestic  insurance  company  authorized  in  this  state 
to  transact  the  business  specified  in  sub-division  five  of  the  pre- 
ceding section,  and  possessed  of  two  hundred  and  fifty  thousand 
dollars  paid  up  capital  stock,  may  in  addition  to  insuring  against 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  19 

the  casualties  specified  in  sub-division  five,  insure  against  injury 
or  loss  to  persons  or  property,  or  both,  contemplated  by  sub-divi- 
sion six,  and  may  also  insure  glass  against  breakage. 

(e)  Any  foreign  insurance  company  authorized  in  this  state 
to  transact  the  business  specified  in  sub-division  five  of  the  pre- 
ceding section,  if  possessed  of  a  paid  up  capital  of  three  hundred 
thousand  dollars,  may,  in  addition  to  insuring  against  the  casual- 
ties specified  in  said  sub-division  five,  insure  against  the  casual- 
ties specified  in  sub-division  six  of  the  preceding  section  and  also 
insure  glass  against  breakage. 

Providing  always,  that  the  charter  or  articles  of  incorporation 
of  any  such  company  authorizes  the  writing  of  such  additional 
insurance. 

No  coimpany  shall  expose  itself  to  loss  on  any  one  risk  or  lia/ 
ard,  to  an  amount  exceeding  ten  per  cent  of  its  paid  up  capital 
unless  the  excess  shall  be  reinsured  in  some  other  good  and  re- 
liable company  licensed  to  do  an  insurance  business  in  this  state. 
But  in  no  case  shall  such  excess  reinsurance  exceed  ten  per  cent 
of  the  capital  of  the  reinsuring  company,  and  that  a  certificate  of 
such  reinsurance  shall  be  furnished  to  the  insured. 

But  the  restrictions  as  to  the  amount  of  risk  a  company  may 
assume  shall  not  be  applicable  to  a  company  that  receives  on 
deposit  and  guarantees  the  safe  keeping  of  books,  papers  and 
moneys  and  other  personal  property.  [39  U.  A.,  ch.  261,  §  1 ; 
38  G.  A.,  ch.  348,  §  3 ;  37  G.  A.,  ch.  428,  §  5 ;  34  G.  A.,  ch.  78, 
§  1  ;  34  G.  A.,  ch.  i8,  §  21;  33  G.  A.,  ch.  112,  ^  3 ;  31  G.  A.,  ch. 
7:1,  ^^  2:  31  G.  A.,  ch  ':0.  §  2:  20  G.  A.,  ch.  72,  §  1;  28  G.  A.,  eh.  61. 
§  1 ;  C.  '73,  §  1132.] 

Sec.  1711  (C.  0.  5629).  Loans — reinsurance.  Such  company 
may  lend  money  on  bottomry  or  respondentia,  and  cause  itself  to 
be  insured  in  companies  only  authorized  to  do  business  in  this 
state,  against  any  loss  or  risk  it  may  have  incurred  in  the  course 
of  its  business,  and  upon  the  interest  which  it  may  have  in  any 
property  on  account  of  any  such  loan,  and  generally  to  do  and 
perform  all  other  matters  and  things  proper  to  promote  these 
objects.     [34  G.  A.,  ch.  18,  §  5;  C.  '73,  §  1132.] 

Sec.  1712  (0.  C.  5630).  Policies.  All  policies  or  contracts  of  in- 
surance made  or  entered  into  by  the  company  may  be  made  either 
with  or  without  the  seal  of  said  company,  but  shall  be  subscril)e(l 
by  the  president,  or  such  other  officer  as  may  be  designated  by 
the  directors  for  that  purpose,  and  be  attested  by  the  secretary 
thereof.     [C.  '73,  §  1133.] 

See  also  1727-30-45.     Standard  Fire  Policy  1758a. 

Sec.  1713  (C.  0.  5631).    Transfer  of  stock.    Transfers  of  stock 


20  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

made  by  any  stockholder  or  his  legal  representative  shall  be  sub- 
ject to  the  provisions  of  chapter  one  of  this  title  relative  to  trans- 
fer of  shares,  and  to  such  restrictions  as  the  directors  shall  estab- 
lish in  their  by-laws,  except  as  hereinafter  provided.  [C.  '73, 
§  1134.] 

Sec.  1714  (C.  C.  5632).  Annual  statement.  The  president  or 
the  vice-president  and  secretary  of  each  company  organized  or 
authorized  to  do  business  in  the  state  shall  annually,  on  the  first 
day  of  January  of  each  year  or  Avithin  thirty  days  thereafter, 
prepare  under  oath  and  file  with  the  commissioner  of  insurance, 
a  full,  true  and  complete  statement  of  the  condition  of  such  com- 
panj^  on  the  last  day  of  the  preceding  month,  which  shall  exhibit 
the  following  items  and  facts: 

First — The  amount  of  capital  stock  of  the  company; 

Second — The  names  of  the  officers; 

Third — The  name  of  the  company  and  where  located; 

Fourth — The  amount  of  its  capital  stock  paid  up; 

Fifth — The  property  or  assets  held  by  the  company,  specifying: 

1.  The  value  of  real  estate  owned  by  the  company; 

2.  The  amount  of  cash  on  hand  and  deposited  in  banks  to  the  credit 
of  the  company,  and  in  what  bank  deposited; 

3.  The  amount  of  cash  in  the  hands  of  agents  and  in  the  course  of 
transmission; 

4.  The  amount  of  loans  secured  by  first  mortgage  on  real  estate,  with 
the  rate  of  interest  thereon; 

5.  The  amount  of  all  other  bonds  and  loans  and  how  secured,  with 
the  rate  of  interest  thereon; 

6.  The  amount  due  the  company  on  which  judgment  has  been  ob- 
tained; 

7.  The  amount  of  bonds  of  the  state,  of  the  United  States,  of  any 
county  or  municipal  corporation  of  the  state,  and  of  any  other  bonds 
owned  by  the  company,  specifying  the  amount  and  number  thereof,  and 
par  and  market  value  of  each  kind; 

8.  The  amount  of  bonds,  stock  and  other  evidences  of  indebtedness 
held  by  such  company  as  collateral  security  for  loans,  with  amount  loaned 
on  each  kind,  and  its  par  and  market  value; 

9.  The  amount  of  assessments  on  stock  and  premium  notes,  paid  and 
unpaid;. 

10.  The  amount  of  interest  actually  due  and  unpaid; 

11.  All  other  securities  and  their  value; 

12.  The  amount  for  which  premium  notes  have  been  given  on  which 
policies  have  been  issued; 

Sixth — Liabilities  of  such  company,  specifying: 

1.  Losses  adjusted  and  due; 

2.  Losses  adjusted  and  not  due; 

3.  Losses  unadjusted; 

4.  Losses  in  suspense  and  the  cause  thereof; 

5.  Losses  resisted  and  in  litigation; 

.6  Dividends  in  scrip  or  cash,  specifying  the  amount  of  each,  declared 
but  not  due; 

7.  Dividends  declared  and   due; 

8.  The  amount  required  to  reinsure  all  outstanding  risks  on  the  basis 
of  the  unearned  premium  reserve   as  required  by  law. 

9.  The  amount  due  banks  or  other  creditors; 

10.  The  amount  of  money  borrowed  and  the  security  therefor; 

11.  All  other  claims  against  the  company; 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  21 


Seventh — The  income  of  the  company  during  the  previous  year;  specify- 
ing: 

1.  The  amount  received  for  premiums,  exclusive  of  premium  notes; 

2.  The  amount  of  premium  notes  received; 

3.  The  amount  received  for  interest; 

4.  The  amount  received  for  assessments  or  calls  on  stock  notes,  or 
premium  notes; 

5.  The  amount  received  from  all  other   sources; 

Eighth — The  expenditures  during  the  preceding  year,  specifying: 

1.  The  amount  of  losses  paid  during  said  term,  stating  how  much  of 
the  same  accrued  prior,  and  how  much  subsequent,  to  the  date  of  the 
preceding  statement,  and  the  amount  at  which  such  losses  were  estimated 
in  such  statement; 

2.  The  amount  paid  for  dividends; 

3.  The  amount  paid  for  commissions,  salaries,  expenses  and  other 
charges  of  agents,  clerks  and  other  employes; 

4.  The  amount  paid  for  salaries,  fees  and  other  charges  of  officers  and 
directors; 

5.  The  amount  paid  for  local,  state,  national  and  other  taxes  and 
duties; 

6.  The  amount  paid  for  all  other  expenses,  including  printing,  sta- 
tionery,  rents,   furniture  or   otherwise; 

Ninth — The  largest  amount  insured  in  any  one  risk; 

Tenth — The  amount  of  risks  written  during  the  year  then  ending; 

Eleventh — The  amount  of  risks  in  force  having  less  than  one  year  to 
run; 

Twelfth — The  amount  of  risks  in  force  having  more  than  one  and  not 
over  three  years  to  run; 

Thirteenth — The  amount  of  risks  having  more  than  three  years  to  run; 

Fourteenth — The  dividends  if  any,  declared  on  premiums  received  for 
risks   not   terminated; 

Fifteenth — Each  accident  insurance  company,  or  company  insuring 
against  accidents,  shall  keep  a  register  of  tickets  sold  or  policies  issued 
by  its  officers  or  agents,  which  register  shall  show  the  name  and  residence 
of  the  person  insured,  the  amount  of  insurance,  the  date  of  issue  of  such 
ticket  or  policy,  and  the  time  the  same  will  remain  in  force;  and  the 
annual  statement  of  each  such  company  shall  show  the  number  of  tickets 
sold  and  policies  issued  by  it  during  the  year,  and  the  aggregate  amount 
of  insurance  evidenced  by  such  tickets  and  policies,  classified  as  to  the 
length  of  time  for  which  such  insurance  is  given.  [39  G.  A.  ch.  190,  §  2; 
C.  '73,  §  1141.]* 

Foreign  1716.     Life  1773-90.     App.  1799.     Frat.  1830-36. 

The  statement  required  as  to  the  financial  condition  of  an  insurance 
company  is  intended  not  alone  for  the  information  of  the  auditor  [com- 
missioner of  insurance],  to  enable  him  to  determine  whether  he  should 
issue  a  certificate,  but  also  by  way  of  information  to  the  public.  The  fact 
that  such  statement  is  required  to  be  published  indicates  such  legislative 
intention.  Therefore  not  only  one  who  contracts  for  insurance,  but  also 
one  who  becomes  a  purchaser  of  stock  of  the  company,  is  entitled  to  rely 
upon  such  statements,  and  a  purchaser  of  stock  may  recover  damages 
against  an  officer  of  a  company  for  an  intentional  false  statement  which 
has  operated  to  his  prejudice.  Wai-field  v.  Clark,  118-69. 

The  provision  that  the  statement  shall  show  expenditures  for  the  pre- 
ceding year,  and  also  the  amount  of  losses  paid  during  that  time,  how 
much  subsequent  to  the  date  of  the  preceding  statement,  and  the  amount 
at  which  such  losses  were  estimated  in  such  statement,  implies  that  some 
of  the  matters  to  be  included  in  the  statement  are  to  be  given  by  way  of 
estimate.  Ibid. 

The  sworn  statement  of  the  financial  condition  of  an  insurance  com- 
pany, filed  with  the  auditor  [commissioner  of  insurance],  is  for  the  pro- 


22  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


tection  of  the  public,  and  one  purchasing  stock  has  a  right  to  rely  thereon 
and  may  maintain  an  action  for  deceit  against  the  officer  making  the  same 
for  damages  caused   by  a  false  statement  made  therein.     Ibid. 

Sec.  1715  (C.  C.  5633).  Certificate  refused.  The  commissioner 
of  insurance  shall  withold  his  certificate  or  permission  of  author- 
ity to  do  business  from  any  comjian}^  neglecting  or  failing  to  com- 
ply with  the  provisions  of  this  chapter. 

See  1724-35-47-55;     Life  1796.     General  1821d.     Prat.  1832-39d. 

Sec.  1716  (C.  C.  5634).    Annual  statements  of  foreign  company. 

The  annual  statefment  of  foreign  companies  doing  business  in  this 
state  shall  also  show,  in  addition  to  the  foregoing  matters,  the 
amount  of  losses  incurred  and  premiums  received  in  the  state 
during  the  preceding  period,  so  long  as  such  company  continues 
to  do  business  in  this  state.     [C.   '73,  §  1146.] 

Sec.  1718  (C.  C.  5635).  Inquiry  by  commissioner.  The  com- 
missioner of  insurance  shall  address  any  inquiries  to  any  insur- 
ance compan}^  in  relation  to  its  doings  and  condition,  or  any 
other  matter  connected  with  its  transactions,  which  he  may 
deem  necessary  for  the  public  good,  or  for  a  proper  discharge 
of  his  duties,  and  any  company  so  addressed  shall  jjromiDtly  re- 
ply in  Avriting  thereto.     [C.  '73,  §  1142.] 

Sec.  1719  (C.  C.  5636).    Statements  published— printed  forms. 

He  shall  cause  to  be  prepared  and  furnished  to  each  company 
organized  under  the  laws  of  this  state,  and  to  the  attorney  or 
agent  of  each  company  incorporated  in  other  states  and  foreign 
governiments,  who  may  apply  therefor,  printed  forms  of  state- 
ments required  by  this  chapter,  and  may  from  time  to  time  make 
such  changes  in  the  forms  as  shall  seem  to  him  best  adapted  to 
elicit  from  the  companies  a  true  exhibit  of  their  condition  in 
respect  to  the  several  points  hereinbefore  enumerated.  [C.  '73, 
§  1157.] 

Sec.  1720-a  (C.  C.  5466).     Commissioner's  annual  report.     He 

shall  cause  the  information  contained  in  the  statements  required 
of  the  companies  organized  or  doing  business  in  the  state  to  be 
arranged  in  detail,  and  prepare  the  same  for  printing  which  re- 
port shall  be  made  to  the  governor  on  or  before  the  lirst  day  of 
May  of  each  year.  [28  G.  A.,  ch.  ()2,  §  1;  16  G.  A.,  ch.  164;  C.  '73, 
§  1158.] 

Applicable  also  to  Life  companies.     See  1781. 

Sec.  1721  (C.  C.  5637).    Foreign  companies — capital  required. 

No  stock  insurance  coanpaiiy  organized  under  or  by  the  laws 
of  any  other  state  or  foreign  government  for  the  purpose  speci- 
fied in  this  chapter,  shall,  directly  or  indirectly,  take  risks  or 
transact  any  business  of  insurance  in  this  state  unless  possessed 
of  two  hundred  thousand  dollars,  of  actual  paid  up  capital,  ex- 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  23 

elusive  of  any  assets  deposited  in  any  state,  territory,  district  or 
countr}^  for  the  special  benefit  or  security  of  those  insured  there- 
in, but  companies  organized  to  insure  plate  glass  or  live  stock 
exclusively  are  not  required  to  have  a  greater  capital  than  one 
hundred  thousand  dollars;  and  such  companies  organized  to  in- 
sure the  health  of  persons  and  against  personal  injuries,  disable- 
ments or  death  resulting  from  traveling  or  general  accidents  by 
land  or  water,  having  an  actual  paid  up  capital  of  one  hundred 
thousand  dollars  and  surplus  in  an  amount  to  be  approved  by  the 
commissioner  of  insurance,  exclusive  of  any  assets  deposited  in 
other  states  and  territories  for  the  special  benefit  or  security  of 
the  insured  therein,  shall  be  deemed  sufficient  within  the  mean- 
ing of  this  section.  [38  G.  A.,  ch.  346,  §  1 ;  37  G.  A.,  ch.  429,  §  18 ; 
S.  S.  '15 ;  34  G.  A.,  ch.  18,  §  6 ;  21  G.  A.,  ch.  145 ;  16  G.  A.,  ch. 
60;  15  G.  A.,  ch.  55;  C.   '73,  §  1144.] 

Foreign  Mutuals  1723.    Life  1772. 

Sec.  1722  (C.  C.  5638).     Service  of  process — statement.     Any 

foreign  company  desiring  to  transact  tlie  business  of  insurance 
under  this  chapter,  by  an  agent  or  agents  in  the  state,  shall  file 
with  the  commissioner  of  insurance  a  Avritten  instrument,  duly 
signed  and  sealed,  authorizing  such  conimissioner  to  acknowledge 
service  of  notice  or  process  for  and  in  behalf  of  such  company 
in  this  state,  and  consenting  that  service  of  notice  or  process 
may  be  made  upon  the  commissioner  of  insurance,  and  when  so 
made  shall  be  taken  and  held  as  valid  as  if  served  upon  the  com- 
pany according  to  the  laws  of  this  or  any  other  state,  and  waiv- 
ing all  claim  or  right  or  error  by  reason  of  such  acknowledgment 
of  service.  Such  notice  or  process  with  a  copy  thereof  may  be 
mailed  to  the  commissioner  of  insurance  at  Des  Moines,  Iowa, 
in  a  registered  letter  addressed  to  him  by  his  official  title,  and 
he  shall  immediately  upon  receipt  acknowledge  service  thereon 
on  behalf  of  the  defendant  foreign  insurance  company  by  writ- 
ing thereon,  giving  the  date  thereof,  and  shall  immediately  re- 
turn such  notice  or  process  in  a  registered  letter  to  the  clerk  of 
the  court  in  which  the  suit  is  pending,  addressed  to  him  by  his 
official  title,  and  shall  also  forthwith  mail  such  copy,  with  a 
copy  of  his  acknowledgment  of  service  Avritten  thereon,  in  a 
registered  letter  addressed  to  the  person  or  corporation  who  shall 
be  named  or  designated  by  such  company  in  such  written  instru- 
ment. And  such  company  shall  also  file  with  the  commissioner  a 
certified  copy  of  its  charter  or  deed  of  settlement,  together  with 
a  statement  under  oath  of  the  president  or  vice-president  or 
other  chief  officer  and  the  secretary  of  the  company  for  which 
they  may  act,  stating  the  name  of  the  company,  the  place  where 
located,  the  amount  of  its  capital,  with  a  detailed  statement  of 
the  facts  and  items  required  from  companies  organized  under 
the  laws  of  this  state,  and  a  copy  of  the  last  annual  report,  if 
any,  made  under  any  law  of  the  state  by  which  such  company 
was  incorporated;  and  no  agent  shall  be  allowed  to  transact  busi- 


24  INSURANCE  OTHER  THAN  LIFE  Cli.  4,  T.  IX 

ness  for  any  company  whose  capital  is  impaired  by  liabilities 
as  specified  in  this  chapter  to  the  extent  of  twenty  per  cent 
thereof,  while  such  deficiency  shall  continue.     [C.  '73,  §  1144.] 

Applicable  Life  1808.     Praternals  1831.     See  3530  Appendix. 

It  is  the  written  consent  of  the  corporation,  and  not  the  statute  itself, 
which  confers  on  the  auditor  [commissioner  of  insurance]  power  to 
acknowledge  service.     Greaves  v.  Posner,  111-651. 

Where  a  state  prescribes  conditions  upon  which  a  foreign  corporation 
may  do  business  within  it,  such  corporation  thereafter  doing  business 
in  the  state  will  be  presumed  to  have  assented  to  the  conditions  prescribed 
and  will  be  bound  accordingly:  Fred  Miller  Bi^ewing  Co.  v.  Council  Bluffs 
Ins.  Co.,  95-31. 

It  is  within  the  power  of  a  state  to  prescribe  the  method  by  which 
corporations  doing  business  within  its  jurisdiction  may  be  brought  into 
court  and  to  designate  the  officer  or  agent  of  such  corporation  upon  whom 
the  process  necessary  to  commence  an  action  may  be  served:  Idid. 

The  fact  that  a  policy  is  issued  and  accepted  in  violation  of  a  law 
prohibiting  a  company  from  doing  business  which  has  not  complied  with 
certain  statutory  requirements  will  not  be  void  as  between  insured  and 
the  company,  the  latter  not  being  allowed  to  take  advantage  of  such 
objections,  the  penalty  for  violation  of  the  law  being  imposed  upon  the 
company  alone:     Penmjpacker  v.  Capital  Ins.  Co.  80-56. 

A  foreign  company  has  no  right  to  take  risks  in  this  state  without 
complying  with  the  requirements  of  the  law  whether  the  contract  for 
such  risks  are  made  in  this  state  or  not:     Seamans  v.  Zimmerman,  91-363. 

Premium  notes  taken  by  a  company  not  authorized  to  do  business  in 
this  state  cannot  be  enforced  in  an  action  by  a  foreign  receiver  of 
such  company  in  the  courts  of  this  state:  Parker  v.  Lainb,  99-265. 

A  company  which  has  transacted  business  in  the  state  cannot  question 
the  validity  of  service  of  notice  upon  it  on  the  ground  that  it  had  not 
appointed  agents,  etc.,  as  required  by  the  statute.  Sparks  v.  'National 
Masonic  Ace.  Ass.,  100-458. 

By  complying  with  these  provisions  as  to  the  designation  of  an  agent 
upon  whom  service  may  be  made,  the  corporation  becomes  subject  to 
the  laws  of  the  state,  and  to  treatment  in  many  respects  as  a  domestic 
corporations,  and  liable  to  be  sued  in  all  respects  as  such  a  corporation 
would  be:   German  Bank  v.  American  F.  Ins.  Co.,  83-491. 

Service  of  process  may  be  made  upon  any  agent  of  the  company  within 
the  state:     Niagara  Ins.  Co.  v.  Rodecker,  47-162. 

Failure  of  non-resident  company  to  comply  with  section  1808  of  code 
cannot  be  pled  in  its  defense  to  prove  lack  of  notice  when  notice  has 
been  served  on  commissioner.  Companies  doing  business  in  state  pre- 
sumed to  comply  with  law.  Flynn  v.  Western  Mutual  Life  Assn.,  171 
N.  W.  711. 

Sec.  1723  (C.  C.  5639).  Foreign  mutual  companies.  Any  mu- 
tual insurance  company  organized  outside  of  this  state  and  au- 
thorized to  transact  the  business  of  insurance  on  the  mutual 
plan  in  any  other  state  of  the  United  States  or  in  the  District 
of  Columbia,  may  be  admitted  to  this  state  and  authorized  to 
transact  herein  any  of  the  kinds  of  insurance  authorized  by  its 
charter  or  articles  of  incorporation,  when  so  permitted  by  the 
provisions  of  this  chapter,  with  the  powers  and  privileges  and 
subject  to  the  conditions  and  limitations  specified  in  said  chapter; 
provided,  however,  such  company  has  complied  Avith  all  the 
statutory  provisions  which  require  stock  companies  to  file  papers 


Ch.4,T.  IX  INSURANCE  OTHER  THAN  LIFE  25 

and  to  furnisli  information  and  to  submit  to  examination,  and 
is  also  solvent  according  to  the  requirements  of  this  chapter  and 
is  possessed  of  a  surplus  safety  invested  as  follows : 

1.  In  case  any  such  mutual  company  issuing  policies  for  a 
cash  premium  without  an  additional  contingent  liability  equal 
to  or  greater  than  the  cash  premium,  the  surplus  shall  be  at  least 
two  hundred  thousand  dollars. 

2.  In  case  of  any  other  such  mutual  company  issuing  policies 
for  a  cash  premium  or  payment  with  an  additional  contingent 
liability  equal  to  or  greater  than  the  cash  premium  or  payment, 
the  surplus  shall  be  such  an  amount  as  the  insurance  commis- 
sioner of  loAva  may  require,  but  in  no  case  less  than  fifty  thou- 
sand dollars,  provided  that  the  provisions  of  this  section  fix- 
ing a  minimum  surplus  of  fifty  thousand  dollars  shall  not  apply 
to  companies  now  admitted  to  do  business  in  Iowa :  provided 
further,  that  no  such  mutual  company  shall  be  authorized  to 
transact  compensation  insurance  without  a  surplus  of  at  least 
two  hundred  thousand  dollars  unless  all  liability  for  each  ad- 
justed claim  in  this  state,  the  payment  of  any  part  of  which  is 
deferred  for  more  than  one  year,  shall  be  provided  for  by  a 
special  deposit,  in  a  trust  company  of  this  state,  which  shall  be 
a  trust  fund  applicable  solely  and  exclusively  to  the  payment  of 
the  compensation  benefits  for  which  such  deposit  is  made,  or 
shall  be  re-insured  in  an  authorized  stock  company,  or  in  an 
authorized  mutual  company  with  a  surplus  of  at  least  two  hun- 
dred thousand  dollars.     [37  G.  A.,  ch.  429,  §  19 ;  C.  73,  §  1144.] 

See   also   1721-35.     Life    1772.     Associations   1794.     Praternals    1829. 

Sec.  1724  (C.  C.  5640).  Certificate.  When  any  foreign  com- 
pany has  fully  complied  with  the  requirements  of  law  and  be- 
come entitled  to  do  business,  the  commissioner  of  insurance  shall 
issue  to  such  company  a  certificate  of  that  fact,  which  certificate 
shall  be  renewed  annually  on  the  first  day  of  March,  if  the  com- 
missioner is  satisfied  that  the  capital,  securities  and  investments 
of  such  company  remain  unimpaired,  and  the  company  has  com- 
plied with  the  provisions  of  law  applicable  thereto.  [C.  '73,  § 
1146.] 

See    1715-25-47-55.      Life    1796.      General    1821d.      Frat.    1832-39d. 

The  power  to  exclude  foreign  corporations  includes  the  right  to  pre- 
clude such  corporations  from  continuing  in  business  without  complying 
with  the  provisions  imposed  by  statute.  Manchester  Ins.  Co.  v.  Herriott, 
91  Fed.  711. 

It  is  only  upon  compliance  with  statutory  requirements  that  foreign 
companies  become  entitled  to  do  business  within  the  state.  Hartman  v. 
Hallowell,  126-643. 

Sec.  1725  (C.  C.  5736).    Agent  to  have  certificate  of  authority. 

No  agent  shall  directly  or  indirectly  act  for  any  insurance  com- 
pany referred  to  in  this  chapter,  in  taking  risks  or  transacting 
business  of  insurance  in  the  state,  without  procuring  from  the 


26  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

commissioner  of  insurance  a  certificate  of  authority  to  the  effect 
that  such  company  has  complied  with  all  the  requirements  of  this 
chapter.  [C.   73,  §  1145.] 

Agents  1749-50.  Life  1800-14-15-21f,  k,  1.  Fraternal  1833-37.  Life 
1796.     Applicable  1800-l-21d.     Fraternal  1832-39d. 

An  agent  procuring  insurance  for  his  principal  in  a  company  not 
authorized  to  do  business  in  the  state  becomes  liable  to  the  principal  for 
any  loss  resulting  from  the  failure  to  procure  valid  insurance.  Hartmun 
V.  Hollowell,  126-643. 

Sec.  1726  (C.  C.  5641).  Insurance  notes.  xVll  notes  taken  for 
policies  of  insurance  in  any  companj^  doing  business  in  the  state 
shall  state  upon  their  face  that  they  have  been  taken  for  insur- 
ance, and  shall  not  be  collectable  unless  the  company  and  its 
agents  have  fully  complied  with  the  laws  of  the  state  relative  to 
insurance.     [C.  73,  §  1146.] 

See  also  1727. 

A  negotiable  note  which  does  not  state  upon  its  face  that  it  has  been 
taken  for  insurance  will  not  be  subject,  in  the  hands  of  an  innocent 
holder,  to  the  defense  here  indicated.  The  maker  must  have  that  fact 
appear  upon  the  face  of  the  note  if  he  desires  to  rely  upon  such  defen-se. 
Cook  V.   Weirman,   51-  561. 

The  provisions  of  this  section  with  reference  to  notes  given  for  policies 
of  insurance  are  not  applicable  to  the  premium  notes  taken  by  a  mutual 
benefit  company  for  policies  of  insurance  issued  by  them.  Corey  v.  Hhcr- 
man,  96-114. 

Sec.  1727  (C.  C.  5642).  Forfeiture  of  policies.  No  policy  oi-  con- 
tract of  insurance  provided  for  in  this  chapter  shall  be  forfeited 
or  suspended  for  non-payment  of  any  premium,  assessment  or  in- 
stallment provided  for  in  the  policy,  or  in  any  note  or  contract 
for  the  payment  thereof,  unless  within  thirt.y  days  prior  to  or  on 
or  after  the  maturity  thereof  the  company  shall  serve  notice  in 
writing  upon  the  insured  that  such  premium,  assessment  or  in- 
stallment is  due  or  to  become  due,  stating  the  amount,  and  the 
amount  necessary  to  pay  the  customar}"  short  rates,  up  to  the 
time  fixed  in  the  notice  Avhen  the  insurance  will  be  suspended, 
forfeited  or  canceled,  which  shall  not  be  less  than  thirty  days 
after  service  of  such  notice,  which  may  be  made  in  person,  or  by 
mailing  in  a  registered  letter  addressed  to  the  insured  at  his 
postoffice  as  given  in  or  upon  the  policy,  and  no  suspension',  for- 
feiture or  cancellation  shall  take  efi'ect  until  the  time  thus  fixed 
and  except  as  herein  provided,  anything  in  the  policy,  applica- 
tion or  a  separate  agreement  to  the  contrary  notwithstanding. 
[18  G.  A.,  ch.  210,  §§  1,  2.] 

This  section  was  designed  to  give  to  the  assured  at  least  thirty  days 
from  the  mailing  of  the  notice  in  which  to  make  the  payment  to  which 
the  notice  refers,  and  the  time  cannot  be  shortened  by  a  direction  on  the 
envelope  containing  the  notice  that  it  shall  be  returned  if  not  delivered 
within  fifteen  days.     Smith  v.  Continental  Ins  Co.,  108-332. 

Where  such  notice  treats  two  policies  as  one,  although  they  are  separate 
and  distinct,  it  should  specify  the  amount  required  to  cancel  each  policy, 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  27 


and   also   the   aniounl    ol"   the    preiiiiuiii    aljoul.   (o   hecome   due   on    aceounl. 
thereof.     Jhid.     Bora  v.  Iloinc.  Ins.  do.,  IIO-MT!). 

Forfeitures  are  not  favored  and  the  provisions  of  this  section  are  man- 
datory and  must  he  strictly  followed.  McDonald  v.  Anchor  Mat.  Ins.  Co. 
116-:;71. 

Error  in  stating  the  amount  of  the  short  rate,  as  fixed  by  the  auditor 
under  the  provisions  of  Code  5^  1729,  will  defeat  the  forfeiture.     Jbid. 

The  provisions  of  Sec.  1727,  as  to  notice  of  forfeiture  for  non-payment 
of  premium  note  had  no  application  to  a  forfeiture  of  membership  in  a 
mutual  association  for  failure  to  pay  assessments.  Beeman  v.  Farmers' 
Poineer  Mut.  Ins.  Assn.,  104-83. 

It  appears  that  the  legislature  intended  to  provide  for  constructive 
notice  by  mail,  to  be  completed  either  when  the  registered  letter  is  mailed 
or  as  soon  thereafter  as  it  shall  be  received  at  the  office  of  its  destination 
by  due  course  of  mail.     McKenna  v.  8tate  Ins.  Co.,  73-453. 

The  time  when  the  service  of  notice  of  forfeiture  is  complete  is  the 
time  of  mailing  the  letter  in  accordance  with  the  provisions  of  the  statute, 
and  not  the  time  when  such  letter  would  in  due  course  of  mail  have 
reached  its  destination  (arguendo).  Ross  v.  Haickeye  Ins.  Co.,  83-586; 
and  see  Holhrook  v.  Mill  Oivncrs'  Mut.  his.  Co.,  86-255. 

Sickness  or  insanity  will  not  excuse  failure  to  pay  insurance  premiums 
when  due.  68  Iowa  43;  112  Iowa  724.  In  the  case  Courtney  v.  U.  S. 
Masonic  Benefit  Assn.,  53  N.  W.  237,  court  held  somewhat  contra  under  a 
peculiar  set  of  facts. 

See.  1728  (C.  C.  5643).  Cancellation  of  policy.  At  any  time 
after  the  maturity  of  a  premium,  assessment  or  installment,  i:>ro- 
vided  for  in  the  poliey,  or  any  note  or  contract  for  the  payment 
tliereof,  or  after  the  suspension,  forfeiture  or  cancellation  of  an}- 
policy  or  contract  of  insurance,  the  insured  may  pay  to  the  com- 
pany the  customary-  short  rates  and  costs  of  action,  if  one  lias 
been  commenced  or  judgment  rendered  thereon,  and  may  then,  if 
he  so  elect,  have  his  policy  and  all  contracts  or  obligations  con- 
nected therewith,  whether  in  judgjnent  or  otherwise,  canceled, 
and  they  and  each  of  them  thereafter  shall  be  void;  and  in  case 
of  suspension,  forfeiture  or  cancellation  of  any  policy  or  con- 
tract of  insurance,  the  assured  shall  not  be  liable  for  any  greater 
amount  than  the  short  rates  earned  at  the  date  of  such  sus])en- 
sion,  forfeiture  or  cancellation  and  the  costs  herein  provided. 
The  policy  may  be  canceled  by  the  insurance  company  by  giving 
five  days'  notice  of  such  cancellation,  in  which  event  it  may  re- 
tain only  the  pro  rata  premium.  [34  (I.  A.,  ch.  18,  §  7;  18  G.  A., 
ch.   210,   §   3.] 

See  Standard  Fire  Policy  1758a,  XI. 

An  association  purporting  to  be  organized  under  the  provisions  of 
§  1160  of  the  Code  of  1873,  but  in  fact  exacting  premium  notes  instead  of 
assessments  from  its  members,  thereby  subjected  itself  to  the  requirements 
of  18  G.  A.,  chap.  210  (Code  ^  1727),  as  to  giving  notice  of  forfeiture  on 
account  of  non-payment  of  such  notes.     Bradford  v.  Mut  Ins.  Co.,  112-495. 

The  right  of  assured  to  cancel  the  policy  and  recover  back  premiums 
paid  in  excess  of  customary  short  rates  cannot  be  exercised  by  assigning 
to  another  the  right  to  cancel  such  policy  and  collect  the  unearned  pre- 
mium. The  assignment  would  avoid  the  policy  and  terminate  the  right 
to  recover.  Nor  can  such  unearned  premium  be  recovered  after  the  policy 
has  been  rendered  void  by  taking  other  insurance.  Colby  v.  Cedar  Itainds 
Ins.  Co.,  66-577. 


28  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

If  the  company  elects  to  enforce  a  premium  note  instead  of  cancelling 
the  policy  for  non-payment  as  herein  provided,  it  thereby  waives  a  stipula- 
tion in  the  policy  that  the  insurance  shall  be  forfeited  on  failure  to  pay 
the  note  as  agreed.  By  accepting  payment  in  pursuance  of  legal  proceed- 
ings^ even  after  the  loss  the  company  waives  the  right  to  avail  itself  of 
the  condition  of  forfeiture.    Bloom  v.  State  Ins.  Co.,  94-359. 

It  is  optional  with  the  company  to  allow  a  policy  to  remain  uncancelled, 
and  to  accept  payments  when  made_  without  waiving  its  right  to  insist 
upon  prompt  payments  at  any  time  thereafter.  Morroio  v.  Des  Moines,  Ins. 
Co.,  84-256. 

Sec.  1729  (C.  0.  5644).  Short  rates.  The  commissioner  of  insur- 
ance shall  prepare  and  publish  a  table  of  short  rates  provided  for 
in  the  two  preceding  sections,  which,  when  published,  shall  be  for 
the  guidance  of  all  companies  covered  in  this  chapter,  and  the  rate 
to  be  given  in  the  notice  therein  provided,  and  no  greater  sum  than 
thus  fixed  shall  be  demanded  or  collected.  A  copy  of  said  short 
rates  shall  be  printed  on  or  attached  to  each  policy. 

For  Short  Rate  Table  see  Appendix. 

Sec.  1730  (0.  C.  5645).     Policy  restored— contract  not  valid. 

At  any  time  before  cancellation  of  the  policy  for  non-payment  of 
any  premium,  assessment  or  installment  provided  for  therein,  or 
in  any  note  or  contract  for  the  payment  thereof,  or  after  action 
commenced  or  judgment  rendered  thereon,  the  insured  may  pay 
to  the  insurer  the  full  amount  due,  including  court  costs  if  any, 
and  from  the  date  of  such  payment,  or  the  collection  of  the  judg- 
ment, the  policy  shall  revive  and  be  in  full  force  and  effect,  pro- 
vided such  payment  is  made  during  the  term  of  the  policy  and 
before  a  loss  occurs.  No  provision,  stipulation  or  agreement  to 
the  contrary  in  or  independent  of  the  policy  or  contract  of  in- 
surance shall  avoid  or  defeat  the  right  of  any  insured  to  pay 
short  rates  and  costs  of  action,  if  any,  and  have  the  policy  and 
all  contracts  connected  therewith,  including  judgments  rendered 
thereon,  canceled.  [18  G.  A.,  ch.  210,  §  3.] 

Sec.  1731  (C.  0.  5646).  Examination — dissolution.  The  com- 
missioner of  insurance  shall,  when  he  finds  it  expedient,  appoint 
one  or  more  persons,  not  officers,  agents  or  stockholders  of  any 
insurance  company  doing  business  in  the  state,  to  examine  into 
the  affairs  and  conditions  of  any  such  company  incorporated 
or  doing  business  therein,  or  make  such  examination  himself,  and 
the  officers  or  agents  thereof  shall  produce  their  books  for  the 
inspection  of  the  examiners  and  otherwise  assist  therein,  so  far  as 
they  can  do  so ;  and  in  conducting  the  investigation  they  may 
examine  under  oath  the  officers  or  agents  of  any  company,  or 
others,  relative  to  the  business  and  condition  of  the  company, 
and  the  result  thereof  shall  be  published  in  one  or  more  papers 
in  the  state,  when  the  commissioner  believes  the  public  interest 
requires  it.  When  it  appears  to  the  commissioner  from  such  ex- 
amination that  the  assets  and  funds  of  any  company  incorporated 
in  this  state  are  reduced  or  impaired  by  its  liabilities,  as  defined 
under  the  head  of  liabilities  in  the  statement  required  by  this 


Ch.  4,T.IX  INSURANCE  OTHER  TITAN  LTF^E  29 

chapter,  more  than  twenty  per  cent  below  the  paid  up  capital 
stock  required,  he  shall  direct  the  officers  thereof  to  require  the 
stockholders  to  pay  in  the  amount  of  such  deficiency  with  sudi 
a  period  as  lie  m<iy  (h'si<>'nate  in  sucli  J-C(piisi1i(»n,  or  lie  sIimII  coim- 
municate  the  fact  to  the  attorncy-ocncrjil,  who  shall  apply  1o 
the  district  court  or  if  in  vacation  to  one  of  the  judges  thereof, 
for  an  order  requiring  the  company  to  show  cause  why  its  busi- 
ness shall  not  be  dissolved.  The  court  or  judge,  as  the  case  may 
be,  shall  thereupon  proceed  to  hear  the  allegations  and  proofs  of 
the  respective  i)arties;  and  in  case  it  appears  to  its  or  his  satis- 
faction that  the  assets  and  funds  of  said  company  are  not  suf- 
ficient, as  aforesaid,  or  that  the  interest  of  the  public  requires  it, 
it  or  he  shall  decree  a  dissolution  of  said  company  and  a  dis- 
tribution of  its  effects,  and  appoint  a  receiver  tlierefor.  The  a])- 
plication  of  the  attorney-geiiei'al  may  be  by  tlie  court  or  judge 
sent  to  a  referee  to  inquire  into  and  report  upon  the  facts  stated 
therein,  Avhich  report  shall  be  made  to  the  court  or  judge  [(/.  '7^^, 
§   1149.] 

See  1700-53-nr>.     Life  1777.     Applicable  1821   a  to  g.     Fraternal  IS^Ob,  c. 

An  insurance  company  may  enforce  assessments  for  the  purpose  of 
making  good  a  depletion  of  its  capital,  without  a  requisition  from  the 
auditor  of  state  [commissioner  of  insurance]  directing  sueh  assessment. 
lonm  Natinndl  Banl-  v.  Cooper,  l^l-nnG. 

Sec.  1732  (C.  C.  5647).  Requisition  on  stockholders.  An\' 
comi:)any  receiving  such  a  requisition  from  tlie  comjiiissionor  of 
insurance  sliall  forthwith  call  upon  its  stockholders  for  such 
amounts  as  will  make  its  paid  up  capital  equal  to  the  amount 
fixed  b}^  this  chapter  or  the  articles  of  incorporation  of  said 
company ;  and  in  case  any  stockholder  shall  refuse  or  neglect  to 
pay  the  amount  called  for  after  notice  personally  given,  or  by 
advertisement  in  such  time  and  manner  as  the  commissioner 
shall  approve,  it  shall  be  lawful  for  the  company  to  require  the 
return  of  the  original  certificate  of  stock  held  by  such  stock- 
holder, and  in  lieu  thereof  to  issue  new  certificates  for  such 
number  of  shares  as  the  said  stockholder  may  be  entitled  to  in 
the  proportion  that  the  ascertained  value  of  the  funds  of  the 
said  company  ma}^  be  found  to  bear  to  its  original  capital,  the 
value  of  such  shares  for  which  ncAv  certificates  shall  be  issued  to 
be  ascertained  under  the  direction  of  the  commissioner,  tlie 
company  pa^'ing  for  the  fractional  parts  of  shares,  and  the  direc- 
tors of  such  company  may  issue  new  stock  and  dispose  of  tlie 
same,  and  issue  new  certificates  therefor,  to  an  amount  sufficient 
to  make  up  the  original  capital  of  the  company.  Tn  the  event 
of  additional  losses  accruing  upon  new  risks,  taken  after  the  ex- 
piration of  the  period  limited  by  the  commissioner  in  the  afore- 
said requisition  for  filling  up  of  the  deficiency  in  the  capital  of 
such  company,  and  before  such  deficiency  shall  have  been  made 
up,  the  directors  shall  be  individuallv  liable  to  the  extent  there- 
of.    [C.  '73,  §  1150.] 


30  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

See   lt,yi,   1701-21-39.     Life  1769-72. 

See.  1733  (C.  C.  5648).  Mutual  companies— dissolution.  II', 
upon  sueh  examination,  it  shall  appear  to  the  comissioner  of  in- 
surance that  the  assets  of  any  eonii:»any  organized  or  operating 
upon  the  plan  of  mutual  insurance  under  this  chapter  are  insuf- 
ficient to  justify  the  continuance  of  such  company  in  business, 
he  shall  proceed  in  relation  to  such  company  in  the  same  manner 
as  herein  required  in  regard  to  stock  companies ;  and  the  trustees 
or  directors  of  such  company  are  made  personally  liable  for  am^ 
losses  which  ma}^  be  sustained  upon  risks  taken  after  the  expira- 
tion of  the  period  limited  by  the  commissioner  for  filling  up  the 
deficiency  in  the  assets  or  premium  notes,  and  before  such 
deficiency  shall  have  been  made  up.     |C.  '78,  §  1151.  | 

See  also  1721.    Life  1770. 

Sec.  1734  (C.  C.  5649).  Transfers  of  stock  pending  investiga- 
tion. Any  transfer  of  the  stock  of  any  comi^an}^  organized  under 
this  chapter,  made  pending  any  investigation  above  required, 
shall  not  release  the  party  making  the  transfer  from  any  liability 
for  losses  which  ma}^  have  accrued  previous  to  such  transfer. 
[Same.] 

Sec.  1735  (C.  C.  5650).  Revocation  of  certificate  of  foreign 
company.  The  commissioner  of  insurance  shall  be  authorized 
to  examine  into  the  condition  and  affairs  of  any  insurance  com- 
pany, as  provided  for  in  this  chapter,  doing  business  in  this 
state,  not  organized  under  its  laws,  or  cause  such  examination  to 
be  made  by  some  person  or  persons  appointed  by  him  having 
no  interest  in  any  insurance  company;  and  when  it  shall  appear 
to  his  satisfaction  that  the  affairs  of  any  such  company  are  in 
an  unsound  condition,  he  shall  revoke  the  certificates  granted  in 
its  behalf  and  cause  a  notification  thereof  to  be  published  in  some 
newspaper  of  general  circulation,  published  at  the  seat  Of  gov- 
ernment, and  no  agent  or  agents  of  such  company  after  such 
notice  shall  issue  policies  or  renew  any  previously  issued.  [C. 
'73,  §  1152.] 

See   1721-23.     Life   1772.     Associations   1794.     Fraternals   1829. 

Sec.  1736    (C.   C.   5651).     Laws  of  other  states—reciprocity. 

When,  by  the  laws  of  any  other  state,  any  taxes,  fines,  penalties, 
licenses,  fees,  deposits  of  money,  securities  or  other  obligations 
or  prohibitions  are  imposed,  or  would  be  imposed,  on  insurance 
companies  of  this  state  doing  or  that  might  seek  to  do  business  in 
such  other  state,  or  upon  their  agents  therein  so  long  as  such  laws 
continue  in  force  the  same  obligations  and  prohibitions  of  what- 
ever kind  shall  be  imposed  upon  all  insurance  companies  of  such 
other  state  doing  business  in  this  state  or  upon  their  agents  here. 
[C.   '73  §  1154.] 

Applicable  to  Life  Companies.     See  1810. 

Section  applied.  Siate  v.  Fidelity  &  Casualty  Co.,  77-648. 


Ch.4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  31 

Sec.  1737  (C.  C.  5652).  Certificates  of  compliance — ^how  pub- 
lished. The  eominissioiier  of  iiisuraiu-e  shall  annually,  as  soon 
as  practicable  after  the  first  of  March,  publish  in  two  newspapers 
of  general  circulation,  a  statement  made  up  from  the  annual 
report  of  every  insurance  company  of  the  character  provided 
for  in  this  chapter  and  doing  business  in  this  state  wliether  or- 
g-anized  under  the  hiws  of  this  or  any  other  state,  which  state- 
ments sliall  contain  a  synopsis  of  the  company's  annual  repoi-t 
and  shall  show  that  the  company  has  in  all  respects  complied 
with  the  laws  of  the  state  relating  to  insurance  and  is  authorized 
to  transact  business  in  the  state.  One  publication  as  above  con- 
templated, shall  be  made  at  the  seat  of  government,  and  in  case 
of  companies  organized  in  this  state  and  located  elsewhere  than 
in  the  city  of  Des  Moines,  the  other  shall  be  made  in  the  county 
in  which  the  home  office  of  the  company  is  located.  The  fee  for 
each  publication  shall  be  six  dollars,  which  shall  be  paid  to  the 
commissioner  of  insurance  at  the  time  and  in  the  manner  pro- 
vided for  in  section  seventeen  hundred  fifty-two,  supplement  to 
the  code,  [1902]  and  shall  be  by  him  paid  to  the  papers  making 
the  publication  upon  receipt  of  a  bill  for  same,  together  Avith  an 
affidavit  by  the  publisher  or  foreman  shoAving  tliat.  such  publica- 
tion has  been  properly  made,  the  same  to  be  filed  within  thirty 
davs  from  the  date  of  such  publication.  [31  G.  A.,  ch.  73;  C.  73, 
§  1155.] 

Sec.  1738  (0.  C.  5653).  False  statement  of  assets.  No  com- 
pany transacting  the  business  of  fire  insurance  within  the  state 
shall  state  or  represent  by  advertisement  in  any  newspaper, 
magazine  or  periodical  or  by  any  sign,  circular,  card,  policy  of 
insurance  or  renewal  certificate  thereof  or  otherwise,  any  funds 
or  assets  to  be  in  its  possession  and  lield  available  for  the  pro- 
tection of  holders  of  its  policies  unless  so  held,  except  the  policy 
of  insurance  or  certificate  of  renewal  thereof  may  state  as  a  single 
ite'm  the  amount  of  capital  set  forth  in  the  charter  or  articles  (>f 
incorporation  or  association  or  deed  of  settlement  under  Avhicli 
it  is  authorized  to  transact  business.     |17  0.  A.,  ch.  Ill,  §§  1,  3.] 

Sec.   1739    (C.   C.   5654).     Statement  of  capital  and  surplus. 

Every  advertisement  or  public  announcement,  and  every  sign, 
circular  or  card  issued  or  published  by  any  foreign  companx' 
transacting  the  business  of  fire  insurance  in  the  state,  or  by  any 
officer,  agent  or  representative  thereof,  which  shall  pur])ort  to 
make  known  its  financial  standing,  shall  exhibit  the  capital  aclual- 
ly  paid  in  in  cash,  and  the  amount  of  net  surplus  of  assets  over 
all  its  liabilities  actually  held  and  available  for  the  payment(d' 
losses  by  fire  and  for  the  protection  of  holders  of  fire  policies, 
and  sliail  also  exhibit  the  amount  of  net  surplus  of  assets  over  all 
liabilities  in  the  United  States  actually  available  for  the  pay- 
ment of  losses  by  fire  and  held  in  the  United  States  for  the  pro- 
tection of  holders  of  fire  policies  in  the  United  States,  including 
in  such  liabilities  the  fund  reserved  for  reinsurance  of  outstand 


32  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

ing  risks,  and  the  same  shall  correspond  with  the  latest  verified 
statement  made  by  the  company  or  association  to  the  commis- 
sioner of  insurance.  No  such  company  shall  write,  place  or 
cause  to  be  written  or  placed  any  polic}'  or  contract  for  insur- 
ance upon  property-  situated  or  located  in  this  state  except 
through  its  resident  agent  or  agents.  [Same,  §  2.] 
See  1691,  1701-21.     Life  1769-72. 

Sec.  1740  (C.  C.  5655).  Penalty.  Any  violation  of  the  pro- 
visions of  the  two  preceding  sections  shall  for  the  first  offense 
subject  the  company,  association  or  individual  guilty  thereof  to 
a  penalty  of  five  hundred  dollars,  to  be  recovered  in  the  name 
of  the  state,  w^ith  costs,  in  an  action  instituted  by  the  county 
attorney,  either  in  the  county  in  Avhich  the  company,  association 
or  individual  is  located  or  transacts  business,  or  in  the  county 
where  the  offense  is  committed,  and  such  penalty,  when  recoverd, 
shall  be  paid  into  the  school  fund  of  the  county  in  which  action  is 
brought.  Every  subsequent  violation  of  said  sections  shall  sub- 
ject the  coimpany,  association  or  individual  to  a  penalt}^  of  one 
thousand  dollars,  to  be  sued  for,  recovered  and  disposed  of  in 
like  manner.     [Same,  §  4.] 

Sec.  1741  (C.  C.  5656).  Copy  of  application.  All  insurance 
companies  or  associations  shall,  upon  the  issue  or  renewal  of 
any  polic}^,  attach  to  such  policy,  or  indorse  thereoii,  a  true  copy 
of  any  application  or  representation  of  the  assured  whicli,  by 
the  terms  of  such  policy,  are  made  a  part  thereof,  or  of  the  con- 
tract of  insurance,  or  referred  to  therein,  or  which  may  in 
any  manner  afi'ect  the  validity  of  such  policy.  The  omission  so 
to  do  shall  not  render  the  policy  invalid,  but  if  any  company  or 
association  neglects  to  comply  Avitli  the  requirements  of  this 
section  it  shall  forever  be  precluded  from  pleading,  alleging  or 
])roving  an^^  such  application  or  representations,  or  any  part 
thereof,  or  falsity  thereof,  or  any  parts  thereof,  in  any  actioji 
upon  such  polic3%  and  the  plaintiff  in  any  such  action  shall  not 
be  required,  in  order  to  recover  aiiainst  such  company  or  associa- 
tion, either  to  plead  or  prove  such  application  or  representation, 
but  may  do  so  at  his  option.     [18  G.  A.,  ch.  211,  §  2.] 

Applicable  to  life  1819.  Assessment  Associations  and  Fraternals.  See 
Supreme  Court  opinions  to  1741  and  1819.     See  also  1826. 

Assured  is  justified  in  relying  on  advice  and  assistance  of  a  soliciting 
agent  in  preparing  his  application  and  the  language  will  be  given  a 
reasonable  construction  in  favor  of  assured  in  order  to  avoid  forfeiture  on 
technical  grounds.  Bucknam  v.  Intcr-Htate  Business  Men's  Accident  Assn. 
183  loica,  652. 

The  provisions  of  sections  1741  to  1744,  inclusive,  apply  to  mutual 
assessment  insurance  associations  organized  under  chapter  5,  title  IX 
of  the  code,  as  well  as  to  insurance  companies  organized  under  chapter 
4,  title  IX.     Corson  v.  Iowa  Mul.  Fire  Ins.  Assn.,  115-485. 

The  fact  that  the  application  is  not  embodied  in  or  attached  to  the 
policy  does  not  preclude  proof  of  the  terms  of  the  application  in  a  suit  by 
the  insured  against,  members  and  officers  of  a  mutual  benefit  association 
to  compel  the  payment  of  the  assessment,  where  such  evidence  is  sought 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  33 


to  be  introduced  for  the  purpose  of  showing  that  the  assured  knew  that 
the  company  was  conducted  on  the  assessment  plan.  Moo7'e  v.  Union 
Fraternal  Ace.  Assn.,  103-424. 

The  purpose  of  the  statutory  provisions  under  which  it  is  necessary  to 
set  the  application  out  in  or  attach  it  to  the  policy  is,  that  when  the 
application  is  made  a  part  of  the  contract  a  true  copy  must  be  attached 
to  the  policy,  so  that  writings  composing  the  contract  may  all  ap- 
pear together  and  that  the  insured  may  be  in  possession  of  the  evidence 
of  what  his  contract  is.  Therefore,  held,  that  the  statute  contemplates 
more  than  a  mere  substantial  copy  of  the  application  and  yet  not  a  true 
likeness  or  fac-swiile..  The  copy  must  be  so  exact  and  accurate  as  that 
upon  comparison  it  can  be  said  to  be  a  true  copy  without  resorting  to 
construction.    Johnson  v.  Des  Moines  L.  Assn.,  105-273. 

Where  a  copy  of  an  application  attached  to  or  incorporated  in  the 
policy  is  defective  and  incomplete,  the  company  is  precluded  from  proving 
the  falsity  of  the  representations  in  th.e  application  as  a  defense  to  an 
action  on  the  policy.    Corson  v.  Anchor  Mut  F.  Ins.  Co..  113-641. 

Where  the  copy  of  an  application  attached  to  the  policy  is  totally  de- 
fective and  insufficient,  the  company  cannot  show  misrepresentations  or 
breach  of  conditions  contained  in  such  applicaton.  Corson  v.  Iowa  Mut. 
Fire  Ins.  Assji.,  115-485. 

The  provisions  of  this  section  are  applicable  to  mutual  companies,  not- 
withstanding the  provisions  of  Code  §  1759.     Ibid. 

A  premium  note,  non-payment  of  which  will  by  the  terms  of  the  ap- 
plication render  the  policy  void,  must  be  set  out  as  a  part  of  the  applica- 
tion under  the  provisions  of  this  section.  (Following  Lewis  v.  Burlington 
Ins.  Co.,  71-97;  s.  c.  80-259).     Summers  v.  Des  Moines  Ins.  Co.,  116-593. 

The  examiners'  report  on  an  application  for  life  insurance  is  not  a 
part  of  the  application  or  representation  of  the  assured  a^d  is  not  re- 
quired to  be  included  in  the  copy  of  the  application.  The  same  is  true 
as  to  notes  of  instructions  given  for  making  the  application  and  answers 
and  notes  and  indorsements  upon  the  back  of  the  application  made  for 
mere  convenience.    Johnson  v.  Des  Moines  L.  Assn.,  105-273. 

Wliere  the  copy  of  the  application  attached  to  the  policy  indicated  that 
it  had  been  signed,  but  did  not  show  a  copy  of  the  signature,  held,  that  it 
was  not  such  copy  as  required  by  the  statute,  and  the  terms  of  the  applica- 
tion could  not  be  considered  in  an  action  on  the  policy.  Seller  v.  Economic 
L.  Assn.,  105-87. 

It  is  the  application  or  representations  of  the  assured  only  that  is 
required  to  be  attached  to  or  indorsed  upon  the  policy.  It  is  not  neces- 
sary to  indorse  thereon  provisions  found  in  the  by-laws  of  a  mutual  com- 
pany by  which  the  policy  is  issued.  Fitzgerald  v.  Metropolitan  Ace.  Assn., 
106-457. 

Endorsement  of  a  copy  of  the  application  upon  the  policy,  or  its 
attachment  thereto,  is  a  necessary  foundation  for  pleading  the  falsity  of 
statements  made  therein.  Parlcer  v.  Des  Moines  L.  Assji.,  108-117. 

The  statutory  provisions  requiring  insurance  companies  to  attach  a 
copy  of  the  application  to  each  policy  of  insurance  is  applicable  to  fidelity 
insurance  companies.  United  States  F.  c(-  G.  Co.  v.  Egg  Shippers'  Straic- 
hoard  &  F.  Co.,  148  Fed.,  353. 

The  provisions  of  this  section  are  applicable  to  all  kinds  of  insurance 
and  policies,  including  those  issued  by  benefit  associations  upon  the 
muturd  assessment  plan.  Newman  v.  Covenant  M\it.  Ins.  Assn.,  76-56; 
McConnell  v.  Iowa  Mut.  Aid  Assn.,  79-757.     (See  now  ^  1819.) 

The  requirements  of  this  section  as  to  attaching  the  application  to  or 
indorsing  it  upon  the  policy  are  applicable  to  fraternal  association  acting 
in  a  dual  character  involving  the  element  of  insurance,  as  well  as  mutual 
benefit  associations.  Grimes  v.  Northwestern  Legion  of  Honor.  (See  now 
^  1826.)    n7-:ur>. 

This  and  the  preceding  section  ot  this  act  ai)i)ly  to  all  kinds  of  insur- 


34  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


ance  and  not  merely  to  fire  insurance.     CooTc  v.  Federal  L.  Assn.,  74-746. 

It  is  incompetent,  in  defense  to  an  action  upon  a  policy,  to  plead  or 
prove  statements  made  in  the  application,  where  such  statements  are  not 
reduced  to  writing  and  a  copy  thereof  is  not  attached  to  or  indorsed  upon 
the  policy.  Ellis  v.  Council  Bluffs  Ins.  Co.,  64-507.  And  see  Wallace  v. 
Council  Bluffs  Ins.   Co.,   66-139. 

Where  one  premium  note  was  given  for  two  policies  on  the  same  prop- 
erty, one  against  loss  by  fire  and  lightning,  and  one  against  loss  by  tor- 
nado, and  a  copy  of  the  note  was  attached  to  the  former  and  not  to  the 
latter,  held,  that  in  an  action  on  the  tornado  policy,  non-payment  of  the 
premium  note  as  required  could  not  be  relied  on.  Lewis  v.  Burlington 
Ins.  Co.,  80-259. 

Where  answers  in  the  application  are  filled  up  by  the  agent  taking  such 
application  from  his  own  knowledge,  the  fact  that  a  copy  of  the  applica- 
tion is  attached  to  the  policy  which  is  delivered  to  insured  will  not  bind 
him  to  statements  thus  made,  although  he  fails  to  notify  the  company  of 
their  falsity.  The  assured  is  not  required  to  prove  the  statements  made 
in  the  application  to  be  true,  and  he  is  therefore  not  required  to  examine 
the  copy  of  the  application  indorsed  on  the  policy.  Donnelly  v.  Cedar 
Rapids  Ins.  Co.,  70-693;  and  see  Bennett  v.  Council  Bluffs  Ins.  Co.,  70-600. 

The  conditions  of  the  policy  itself  may  be  shown,  although  they  are 
not  contained  in  an  application  a  copy  of  which  is  attached  to  the  policy. 
Thus  a  failure  to  disclose  the  state  of  the  title  may  be  a  representation 
appearing  in  the  policy  itself  and  may  be  shown  though  not  appearing  in 
the  application  attached  to  the  policy.  McKinnon  v.  Mutual  F.  Ins.,  Co., 
89-170. 

The  provisions  of  this  section  are  broad  enough  to  cover  any  renewal 
or  reinstatement  of  the  policy  of  insurance  which  has  become  invalid. 
(rOOd.vAn   V.  Provident  Savings  Life  Assurance  Society.  97-226. 

Where  a  copy  of  an  application  attached  to  or  incorporated  in  the  policy 
is  defective  and  incomplete,  the  company  is  precluded  from  proving  the 
falsity  of  the  representations  in  the  application  as  a  defense  to  an  action 
on  the  policy.     Corson  v.  Anchor  Mut.  F.  Ins.  Co..  113-641. 

Where  the  copy  of  an  application  attached  to  the  policy  is  totally  de- 
fective and  insufficient,  the  company  cannot  show  misrepresentations  or 
breach  of  conditions  contained  in  such  application.  Corson  v.  loiva  Mut. 
Fire  Ins.  Assn.,  115-485. 

The  provisions  of  ch.  211,  acts  of  18  G.  A.,  embodied  in  this  section, 
held  applicable  to  fraternal  societies  issuing  certificates  on  lives  of 
members.     Stork  v.  Supi'eme  Lodge  E.  of  P..  113-724. 

The  fact  that  warranties  and  representations  embodied  in  the  appli- 
cation cannot  be  proven  because  no  copy  of  such  application  was  attached 
to  the  policy,  does  not  prevent  the  company  from  relying  on  such  war- 
ranties and  representations  as  are  included  in  the  policy  itself.  Kirk- 
patrick  v.  London  G^iar.  cG  Ace.  Co.,  139-370. 

Where  no  copy  of  the  application  is  indorsed  on  the  policy  the  defense 
of  false  representation  in'  the  application  cannot  be  relied  upon.  Salzman 
v.  Machinery  Mut.  Ins.  Assn.,  142-99. 

Where  the  provision  as  to  forfeiture  for  nonpayment  of  premium  note 
is  contained  in  the  application,  failure  to  attach  copy  of  application  to 
the  policy  will  prevent  reliance  on  default  in  the  payment  of  a  premium 
note  as  a  defense  although  notice  of  such  default  has  been  duly  given. 
Rodey  v.  State  Ins.  Co.,  146-23. 

The  statute  does  not  require  that  a  copy  of  any  agreement  made  sub- 
sequently to  the  issuance  or  renewal  of  the  policy  shall  be  attached. 
Wilson  V.  Royal  Union  Mut.  Life  Ins.  Co.,  137-184. 

Sec.  1742   (C.  C.  5657).     Evidence  of  value— proofs— action. 

Ill  any  action  broujilil  in  any  court  in  this  state  on  any  policy  of 
insurance  for  t]ie  loss  of  any  building  so  insured,  the  amount 


Ch.  4,T.  IX  INSURANCE  OTHER  THAN  LIFE  35 

stated  in  the  policy  sliall  be  received  as  prima  facie  evidence  oi! 
the  insurable  value  oL'  the  property  at  the  date  of  the  polic}':  pro- 
videcl,  the  insurance  conipan3'  or  association  issuing  such  policy 
may  show  the  actual  value  of  said  property  at  date  of  policy,  and 
any  depreciation  in  the  value  thereof  before  the  loss  occurred ; 
but  the  said  insurance  company  or  association  shall  be  liable 
for  the  actual  value  of  the  property  insured  at  the  date  of  the 
loss,  unless  such  value  exceeds  the  amount  stated  in  the  policy. 
And  in  an  action  on  such  policy  it  shall  onh^  be  necessary  for  the 
assured  to  prove  the  loss  of  the  building  insured,  and  that  he 
has  given  the  company  or  association  notice  in  writing  of  such 
loss,  accompanied  by  an  affidavit  stating  the  facts  as  to  how  the 
loss  occurred,  so  far  as  they  are  within  his  knowledge,  and  the 
extent  of  his  loss.      [Same,   §   3.] 

See  also  1744.  Applicable  to  state  and  county  associations  operating 
under  chapter  5.     Corson  v.  Iowa  Mutual  Fire  Jns.  Assn..  115-485. 

The  statute  does  not  attempt  to  fix,  as  the  measure  of  recovery  in  case 
of  the  destruction  of  buildings,  any  other  than  the  actual  value  of  tho 
Ijuilding  at  the  time  of  loss.  If,  after  the  prima  facie  t'howing  made  by 
proof  of  the  amount  of  insurance,  the  company  shall  offer  evidence  to 
show  the  actual  value  to  be  less,  then  the  amount  of  recovery  becomes 
a  question  for  the  jury,  and  the  actual  value  is  as  the  jury  shall  find  it. 
The  parties  may,  by  contract,  stipulate  for  the  ascertainment  of  this 
actual  value  by  appraisers.     Zaleskj/  v.  Home  Ins.   Co..  108-341. 

Whether  the  latter  part  of  this  section  is  applicable  in  case  of  loss  of 
personal  property  covered  by  the  policy,  quaere.  Westenhaver  i\  German- 
American  Ins.  Co.,   113-726. 

Where  a  policy  for  $4,000  was  issued  under  an  arrangement  with  the 
soliciting  agent  that  total  insurance  to  the  extent  of  $7,000  should  be 
procured  on  the  property,  held  that  in  an  action  on  the  $4,000'  policy  the 
total  amount  of  insurance  contemplated  was  prima  facie  the  value  of  the 
property  insured.    Wensel  v.  Property  Mutual  Ins.  Assn.,  129-295. 

It  is  error  to  instruct  the  jury  with  reference  to  the  prima  facie  fact 
of  the  value  of  the  property  as  stated  in  the  policy,  as  applicable  to  per- 
sonal property.     Warshatvky  v.  Anchor  Mut.  F.  Ins.  Co.,  98-221. 

A  policy  is  not  prima  facie  evidence  as  to  the  value  of  personal  prop- 
erty insured.  The  provisions  of  this  section  as  to  presumption  of  value 
are  applicable  only  to  buildings.  Joy  v.  Security  F.  Ins.  Co.,  83-12;  Martin 
V.  Capital  Ins.  Co.,  85-643. 

As  to  buildings  covered  by  the  insurance  the  burden  is  on  the  company 
to  show  that  the  property  was  not  worth  the  amount  for  which  it  was 
insured.     Des  Moines  Ice  Co.  v.  Niagara  F.  Ins.  Co.,  99-193. 

The  law  fixes  prima  facie  the  measure  of  recovery  in  case  of  loss  of  a 
building,  and  it  is  immaterial  in  making  out  plaintiff's  case  to  show  what 
the  kind  of  building  was  or  the  material  of  which  it  was  constructed  or 
how  long  it  had  been  in  use.    Davis  v.  Anchor  Mut.  F.  Ins.  Co.,  96-70. 

The  policy  being  prima-  facie  evidence  of  the  value  of  the  insured  build- 
ing, it  is  not  incumbent  upon  the  plaintiff  in  the  first  instance  to  prove 
such  value,  but  evidence  in  respect  to  the  value  being  introduced  by  the 
defendant,  plaintiff  may  introduce  evidence  on  that  point  in  rebuttal. 
Martin  v.  Capital  Ins.  Co.,  85-643. 

Under  particular  facts,  held,  that  the  evidence  as  to  the  value  of  the 
property  was  sufficient,  in  connection  with  the  prima  facie  evidence  sui)- 
plemented  by  the  valuation  stated  in  the  policy,  to  support  the  recovery. 
Hagan  v.  Merchants',  etc..  Ins.  Co.,  81-321. 

It  seems  that   an   appraisement  agreement  relating  exclusively   to  the 


ne  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


value  of  buildings  cannot  be  relied  on  by  reason  of  the  terms  of  this  stat- 
ute to  prevent  the  bringing  of  suit  on  the  policy.  HarriRon  v.  German- 
American  F.  Ins.  Co.,  67  Fed.,  577. 

Waiver  or  proofs  of  loss  cannot  be  shown  under  an  allegation  that 
they  have  been  furnished.    Welsh  v.  Des  Moines  Ims.  Co.,  71-337. 

Under  an  allegation  of  the  furnishing  of  proofs  of  loss  evidence  of  the 
waiver  of  such  proofs  is  not  admissible.  Heusinkveld  v.  St.  Paul  F.  <C- 
M.  Ins.  Co.,  96-224;    106-229. 

Where  insured  was  told  by  the  secretary  on  requesting  blank  proofs  of 
loss  that  such  proofs  were  unnecessary  and  that  there  was  nothing  more 
for  the  owner  to  do  but  wait  until  he  heard  from  the  company,  held,  that 
this  constituted  a  waiver  of  proofs  of  loss.  Scott  v.  Security  F.  Ins.  Co.. 
98-67. 

Requirements  of  the  statute  and  of  policies  of  insurance  as  to  notice 
and  proof  of  loss  may  be  waived  by  the  insurer  through  its  authorized 
agents.  Held,  under  the  facts  of  this  case,  that  the  adjuster  of  the  com- 
pany bound  the  company  by  his  acts  and  statements  so  far  as  they  were 
authorized.  The  general  manager  of  an  insurance  company,  having  full 
charge  of  its  business  in  certain  territory^  may  waive  proofs  of  loss  and 
notice,  and  also  may  waive  a  written  indorsement  required  by  the  terms 
of  the  policy.     Rutliven  v.  American  F.  Ins.  Co.,  92-316;   102-550. 

By  furnishing  proofs  of  loss  the  insured  does  not  waive  or  abandon 
the  right  to  rely  on  an  alleged  waiver  of  such  proofs.  He  may  plead  both 
the  fact  of  furnishing  proofs  and  the  fact  of  waiver,  and  rely  upon  wliich- 
ever  defense  the  evidence  establishes.  Warshaiosky  v.  Anclior  Mul.  F. 
Ins.  Co.,  98-221. 

Good  faith  requires  that  upon  receipt  of  proofs  of  loss  if  the  company 
is  not  satisfied  therewith  it  should  specify  its  o])jections  thereto  to  the 
end  that  the  proofs  may  be  perfected  if  possible,  and  if  the  company 
fails  to  specify  the  objections  at  a  time  when  they  might  be  remedied  it 
should  not  afterward  be  heard  to  urge  them.  Dyer  v.  Dcs  Moines  Ins. 
Co.,  103-524. 

The  action  of  the  company  in  asking  for  an  arbitration  to  determine 
the  amount  to  be  paid  is  a  waiver  of  defects  in  the  proofs  or  notice  of 
loss  known  to  the  company  before  the  arbitration  took  place.  Dee  <C- 
Sons  Co.  V.  Key  City  F.  Ins.  Co..  104-167. 

Notwithstanding  a  provision  in  the  policy  that  none  of  its  terms  or 
conditions  can  be  waived  by  any  person  except  in  writing  by  the  secre- 
tary of  the  company,  and  that  no  agent  has  any  authority  to  waive  or 
modify  any  printed  conditions  of  the  policy,  an  adjusting  agent  having 
power  to  determine  what  proofs  are  satisfactory  may  waive  those  proofs 
which  are  regarded  unimportant,  although  certain  specified  proofs  are 
required  by  the  policy.     Brock  v.  Dcs  Moines  Ins.  Co..  106-30. 

Failure  to  object  to  the  proofs  of  loss  because  not  accompanied  with 
affidavit,  as  required,  amounts  to  a  waiver  of  objection  on  this  ground. 
Pringle  v.  Des  Moines  Ins.  Co..  107-742 

Where  the  company  refuses  payment  on  the  ground  that  the  policy 
has  been  suspended  in  consequence  of  failure  to  pay  an  installment  of 
premium,  waiver  of  proofs  of  loss  may  be  inferred.  Pray  v.  Life  In- 
demnity <C-  Security  Co.,  104-114;   Smith  v.  Continental  Tns.  Co..  108-382. 

Unqualified  refusal  to  pay  constitutes  a  waiver  on  the  part  of  the  in- 
surance company  of  proofs  of  death,  where  something  purporting  to  be 
proofs  of  death  has  been  received  by  the  company,  and  not  objected  to. 
Stephenson  v.  Bankers  Life  Assn..  108-637. 

An  agent  having  power  to  adjust  a  loss  has  authority  to  waive  formal 
proofs  of  loss.    Lake  v.  Farmers'  Ins.  Co.,  110-473. 

Wlhere  the  adjuster  requires  the  procurement  of  duplicate  invoices, 
which  are  prepared  at  considerable  expense,  the  company  cannot  after- 
wards object  that  the  proofs  of  loss  are  not  sufficient.  If  the  conduct  of 
the  company  is  such  as  to  induce  the  insured  to  rest,  in  good  faith,  under 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  37 


the  well  founded  belief  of  strict  compliance,  and  that  the  conditions  will 
not  be  insisted  on,  it  cannot  afterwards  set  up  non-performance  of  such 
conditions  as  a  bar  to  recovery.  Ibid.;  Gorson  v.  Anchor  Mut.  F.  Ins.  Co., 
113-641. 

The  promise  to  the  company  to  pay  is  as  effective  as  the  waiver  of 
proofs,  as  a  denial  of  liability  and  the  promise  or  settlement  is  incon- 
sistent with  insistence  on  strict  compliance  with  the  conditions  of  the 
contract.    Lake  v.  Farmers'  Ins.  Co.,  110-473. 

Proofs  of  loss  furnished  to  the  company  are  only  admissible  in 
evidence  in  the  first  instance  to  establish  the  fact  that  they  were  so  fur- 
nished. If  a  schedule  attached  to  such  proofs  is  referred  to  by  a  witness 
as  furnishing  a  correct  statement  of  the  items  of  property  destroyed  and 
the  value  thereof,  it  may  be  introduced  in  evidence  in  connection  with 
such  testimony,  but  the  two  purposes  should  be  kept  distinct.  Names  v. 
Union  Ins.  Co.,  104-612. 

Under  previous  statutory  provisions,  held  that  proofs  of  death  in  a 
particular  case  were  not  sufficient.  Stephenson  v.  Bankers'  Life  Assn., 
108-637. 

Proofs  of  loss  in  a  particular  case  which  did  not  give  an  account  of  the 
loss  nor  state  how  the  fire  originated  nor  state  the  actual  cash  value  of 
the  property  destroyed  were  held  not  to  constitute  such  proofs  of  loss  as 
were  required  by  the  statute  or  by  the  terms  of  the  policy.  Brock  v.  Des 
Moines  Ins.  Co.,  96-39;   106-30. 

While  it  may  be  sufficient  in  a  suit  on  a  policy  to  allege  in  general  the 
performance  of  the  conditions  of  such  policy  (see  §  §  3626,  3628)  and  the 
failure  to  perform  any  particular  condition  must  then  be  specifically 
alleged  by  defendant,  yet  if  the  plaintiff  sets  out  specifically  the  furnish- 
ing of  the  proofs  required,  and  the  defendant  denies  in  general  the  allega- 
tions of  the  petition  an  issue  as  to  the  sufficiency  of  the  proofs  is  raised. 
lUd. 

When  a  policy  of  insurance  required  that,  if  loss  should  occur,  the 
assured  should  give  the  company  immediate  notice  of  the  fact,  and  that  as 
soon  as  possible  after  the  fire  proofs  of  loss  under  oath  should  be  prepared 
and  sent  to  the  company,  and  in  an  action  on  the  policy  the  petition 
showed  that  the  proof  of  loss  was  not  given  within  the  time  or  in  the 
manner  required  by  statute,  held,  that  a  demurrer  to  the  petition  should 
have  been  sustained.     Yon  Genechtin  v.  Citizens'  his.^  75-544. 

Where  the  agent  of  an  insurance  company  informed  the  assured  that 
the  loss  would  be  adjusted,  but  it  was  not  shown  that  such  agent  had 
any  authority  to  adjust  losses  or  bind  the  defendant  in  the  adjustment  of 
losses,  held,  that  the  promise  of  the  agent  that  the  loss  would  be  adjusted 
was  not  a  waiver  of  the  condition  as  to  proofs  of  loss.    Ibid. 

In  an  action  upon  a  policy  of  insurance  where  the  petition  did  not  show 
the  lapse  of  time  for  the  maturity  of  the  claim  required  by  the  policy 
nor  that  required  by  the  statute,  held,  that  it  was  sufficient  ground  for 
demurrer.     Ibid. 

An  instruction  that  the  jury  must  find  that  the  notice  of  loss  was 
given  to  the  company  within  a  reasonable  time,  although  the  policy  re- 
quired the  notice  to  be  given  forthwith,  held  not  erroneous,  the  terms 
being  so  nearly  synonymous  that  no  prejudice  could  have  resulted  there- 
from.    Pennypacker  v.  Capital  Ins.  Co.,  80-56. 

The  proofs  of  loss  are  not  admissible  on  the  trial  to  establish  the  facts 
connected  with  the  loss;  but  in  a  particular  case,  held,  that  they  were 
admissible  to  prove  by  an  indorsement  thereon  the  time  of  their  receipt 
by  the  company.     Lewis  v.  Burlington  Ins.  Co.^  80-259. 

Formal  proof  of  service  of  the  proofs  of  loss  is  not  required.  All  that 
is  necessary  is  that  they  be  given  or  rendered  to  the  company;  and  if 
found  in  the  possession  of  the  company  and  produced  by  it  upon  the  trial 
that  is  sufficient.    Runklc  v.  Hartford  Ins.  Co.,  99-414. 

Where  there  is  an  issue  as  to  whether  notice  and  proofs  of  loss  were 


38  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


given  and  there  is  no  evidence  in  behalf  of  plaintiff  on  such  question,  it 
is  error  to  submit  the  question  to  the  jury.  Heusinkveld  v.  St.  Paul  F. 
d  M.  Ins.  Co.,  96-224. 

Under  an  allegation  that  proofs  of  loss  have  been  furnished,  it  is  not 
competent  to  introduce  evidence  showing  the  waiver  of  such  proofs. 
Heusinkveld  v.  Capital  Ins.  Co.,  95-504. 

The  provisions  as  to  the  prima  -facie  effect  of  the  value  of  buildings  as 
stated  in  the  policy  is  applicable  in  cases  where  there  has  been  a  waiver 
of  proofs  of  loss  as  well  as  where  proofs  of  loss  have  been  made.  Scott 
V.  Security  F.  Ins.  Co.,  98-67. 

It  may  be  that  notice  can  be  given  to  the  agent  who  issued  the  policy, 
but  such  an  agent  would  not  have  authority  t®  waive  the  affidavit  of  loss. 
Ruthven  v.  American  F.  Ins.  Co.,  92-316. 

A  special  agent  authorized  to  adjust  losses  could  not  delegate  his  au- 
thority to  an  adjuster  of  another  company  so  that  a  waiver  by  the  latter 
of  proofs  would  be  binding.     Ibid. 

Proofs  of  loss  which  comply  with  the  requirements  of  the  statute  are 
sufficient,  although  they  do  not  meet  the  requirements  of  the  policy. 
Technical  objections  founded  upon  unreasonable  requirements  in  the  policy 
will  not  be  considered.     Warshaiosky  v.  Anchor  Mut.  F.  Ins.  Co.,  98-221. 

Where  the  policy  required  the  giving  of  notice  to  the  secretary,  held, 
that  a  notice  to  the  company  was  a  sufficient  compliance.  Leivis  v.  Bur- 
lington Ins.   Co.,    80-259. 

Evidence  that  notice  and  proofs  of  loss  were  deposited  in  the  mail  is 
admissible  as  showing  that  they  were  received,  although  their  receipt  is 
denied  by  the  officers  of  the  company.  Pennypacker  v.  Capital  Ins.  Co., 
80-156. 

The  notice  and  affidavit  required  by  this  section  are  solely  for  the 
benefit  of  the  insurer;  and  if,  without  objection  to  the  sufficiency  thereof, 
the  company  advises  insured  that  it  will  proceed  to  settle  the  loss,  it 
thereby  waives  any  objection  on  account  of  defects  in  such  proofs.  Harris 
V.  Phoenix  Ins.  Co..  85-238. 

Where  insured  stated  by  letter  to  the  company  that  he  had  no  knowl- 
edge of  the  particulars  of  the  fire  and  its  origin,  but  did  not  comply  with 
the  requirement  as  to  the  proof  by  affidavit,  and  the  company  made  no 
objection  on  that  ground  held,  that  it  thereby  waived  its  right  to  further 
proof.    Ch'een  v.  Des  Moines  F.  Ins.  Co.,  84-135. 

It  is  not  necessary  that  the  notice  and  affidavit  shall  be  attached  to- 
gether and  delivered  at  the  same  time,  but  it  is  sufficient  that  they  shall 
be  both  in  the  hands  of  the  company  within  the  time  prescribed  for  giv- 
ing notice.     Russell  v.  Fidelity  F.  Ins.  Co.,  84-93. 

As  to  whether  a  stipulation  in  the  policy  requiring  an  appraisement 
as  a  condition  precedent  to  the  bringing  of  an  action  thereunder  would 
be  valid,  in  view  of  the  statute,  quaere.  Zalesky  v.  Home  Ins.  Co.,  102-613; 
108-341;    114-516. 

The  place  where  an  agreement  was  finally  consummated  is  the  place 
of  the  contract,  and  unless  it  be  shown  that  it  was  the  intention  of  the 
parties  that  it  should  be  performed  at  some  other  place,  it  will  ordinarily 
be  governed  by  the  law  of  the  place  of  execution.  Born  v.  Home  Ins.  Co., 
110-379;    120-299. 

Where  an  insurance  agent  Avho  took  an  application  for  a  policy  had 
full  knowledge  of  the  exact  condition  of  applicant's  title,  the  company  was 
bound  thereby.    Ibid. 

Where  a  proposal  for  insurance  contained  in  an  application  therefor 
was  accepted  by  an  insurance  company,  there  was  a  valid  contract  of 
insurance,  though  no  policy  was  issued.  Herring  v.  American  Ins.  Co.^ 
123-533. 

Where  a  railway  company,  by  the  operation  of  its  t?-ains,  destroys  by 
fire   insured   property   situated   on   its  right  of  way,  the  liability  of  the 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  39 


railway  company  to  the  assured  is  primary  and  that  of  the  insurance 
company  is  secondary.     Kenned  1/  Bros.  v.  loini  State.  Jns.  Co.,  119-29. 

Where  the  assured  has  contracted  away  the  right  of  the  insurance 
company  /to  subrogation  without  its  knowledge,  he  cannot  recover  in  case 
of  loss  upon  the  policy,     /bid. 

An  instruction  directing  the  jury  that  the  law  i)resume3  the  building 
to  have  been  of  the  value  for  which  it  was  insured  instead  of  saying  that 
the  amount  stated  in  the  policy  should  be  received  as  prima  facie  evidence 
of  the  insurable  value  of  the  property,  held  not  erroneous,  where  the 
verdict  was  for  less  than  half  of  the  amount  of  the  insurance.  Walrod  v. 
Des  Moines  F.  Ins.  Co.,  159-121. 

There  is  no  statutory  requirement  of  proof  of  loss  as  a  condition 
precedent  to  the  maintenance  of  an  action  for  benefit  or  indemnity  against 
a  mutual  assessment  association.  Brinsmaid  v.  Iowa  State  Trav.  Men's 
Assn.  152-134. 

Defense  based  upon  application  not  applicable  since  copy  of  application 
attached  to  certificate  was  not  a  true  copy.  A  by-law  which  attempts  to 
define  how  proof  of  loss  must  be  filed  is  invalid  if  it  does  not  follow  the 
statute  on  such  sub.iect.  Lyons  v.  Farm  Property  Miit.  Ins.  Assn.  176  N.  W. 
291. 

See.  1742-a  (C.  C.  5658).  Proofs  of  loss.  In  fiinusliing  proofs 
of  loss  under  any  eoiitraet  of  iiisuraiiee  for  daniat>'es  or  loss  0 
personal  property,  it  shall  only  be  necessary  for  the  assured 
within  sixty  days  from  the  time  the  loss  occurs,  to  give  notiet 
in  writing-  to  the  company  issuing  such  contract  of  insurance  ac- 
companied by  an  affidavit,  stating  the  facts  as  to  how  the  loss 
occurred,  so  far  as  same  are  within  his  knowledge,  and  the  extent 
of  the  loss,  anv  agreement  or  contract  to  the  contrarv  notwith- 
standing.     [20'  0.  A.,  ch.  73,  §  1.1 

See  also  1744. 

The  provisions  of  the  policy  relating  to  proofs  of  loss  are  superseded 
by  the  statutory  provisions  so  far  as  they  are  inconsistent.  American 
Cereal  Co.  v.  Western  Assur.  Co.,  148  Fed.,  77. 

An  action  is  premature  and  abatable  when  brought  within  forty  days 
after  service  of  the  notice  of  loss  and  proof  thereof  under  a  mutual  policy 
of  insurance  issued  under  ch.  5,  title  9.  supp.  code,  1913,  even  though 
the  company  dui'ing  said  forty  days  denies  all  liability  under  thr- 
policy.     Salmon  v.   Farm  Property  Mut.  _Assn..   168    la.   521. 

Defense   based   upon   application   not   applicable   since   copy   of  applies 
tion   attached   to   certificate   was   not   a  true   copy.     A   by-law   which   aV 
tempts   to   define   how   proof   of    loss   must  be   filed   is   invalid   if   it   does 
not  follow   the   statute   on  such    subject.     Lyons   v.    Farm.  Property   .U»^ 
Ins.  Assn.  176  N.  W.  291. 

Sec.  1743  (C.  C.  5659).  Conditions.  Any  condition  or  stipula- 
tion in  an  application,  policy  or  contract  of  insurance,  making 
the  policv  void  before  the  loss  occurs,  shall  not  prevent  recovery- 
thereon  by  the  insured,  if  it  shall  be  shown  by  the  plaintiff  that 
the  failure  to  observe  such  provision  or  the  violation  thereof  did 
not  contribute  to  the  loss:  provided,  however,  that  any  condition 
or  stipulation  referring  to  any  other  insurance,  valid  or  invalid, 
or  to  vacancy  of  the  insured  premises  or  the  title  or  ownership 
of  the  property  insured,  or  to  lien,  or  incumbrances  thereon  cre- 
ated bv  volnntarv  act  of  the  insured  and  within  his  control,  or 


40  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  TX 

to  the  suspension  or  forfeiture  of  the  policy  durino-  default  or 
failure  to  pay  any  written  oblioation  given  to  the  insurance 
company  for  llie  ])remium,  oi*  to  the  assignment  or  Irjinsfer  ol* 
such  policy  of  insurance  before  loss  without  the  consent  of  llie 
insurance  company,  or  to  the  removal  of  the  property  insured, 
or  to  a  change  in  the  occupancy  or  use  of  the  property  insured, 
if  such  change  or  use  makes  the  risk  more  hazardous,  or  to  the 
fraud  of  the  insured  in  the  procurement  of  the  contract  of  in- 
surance, shall  not  be  changed  or  affected  by  this  provision.  No 
recovery  on  a  polic.y  or  contract  of  insurance  shall  be  defeated 
for  failure  of  the  insured  to  comply,  after  a  loss  occurs,  with  any 
arbitration  or  appraisement  stipulation  as  to  fixing  value  of 
property.  No  arbitration  shall  take  place  except  Avhere  the  prop- 
erty was  situated  at  the  time  of  loss.  Any  agreement,  stipula- 
tion or  condition  in  any  policy  or  contract  of  insurance  by 
which  any  insurance  company  reserves  or  has  the  right  to  rebuild 
shall  be  void  and  of  no  effect  in  case  of  total  loss,  or  where  the 
amount  of  loss,  upon  the  request  of  the  insurance  company,  has 
been  submitted  to  arbitration.  Nothing  herein  shall  be  construed 
to  change  the  limitations  or  restrictions  respecting  the  pleading 
or  proving  of  any  defense  by  any  insurance  company  to  Avhich  it 
is  subject  by  law.  The  provisions  of  this  section  shall  apply 
to  all  contracts  of  insurance  on  real  and  personal  propertv.  132 
O.  A.,  ch.  75;  28  G.  A.,  ch.  G4,  §  1 ;  28  G.  A.,  ch.  63,  §  1.] 

This  provision  has  no  application  to  the  failure  of  the  insured  to 
comply  with  a  condition  precedent  to  the  taking  effect  of  the  policy. 
Banco  De  Sonoro  v.  Banker's  Muf.  Casualty  Co.,  124-576. 

A  breach  of  warranty  or  condition  constitutes,  generally  speaking,  no 
defense  if  it  appears  that  such  breach  did  not  occasion  or  contribute  to 
the  loss;  but  the  defense  based  on  change  in  use  or  occupancy  is  good 
if  such  change  makes  the  risk  in  fact  more  hazardous.  Krell  v.  Chirkasaio 
Farmer's  Mut.  Fire  Ins.  Co.  127-748. 

The  burden  is  on  the  insured  suing  on  the  policy  to  show  that  change 
in  use  or  occupancy  in  violation  of  the  provisions  of  the  policy  did  not 
contribute  to  the  loss.  Tbid. 

The  question  whether  a  change  in  occupancy  without  consent  increases 
the  risk  is  for  the  jury.  Nicholas  i\  lotca  Merch.  Mut.  Ins.  Co.,  125-262. 

The  fact  that  the  furniture  in  a  dwelling  house  is  insured  after  taking 
a  policy  on  the  house  itself  does  not  in  the  absence  of  fraud  or  over- 
insurance  constitute  an  increase  of  hazard  as  to  the  building.     IMd. 

Breach  of  an  agreement  to  keep  a  set  of  books  in  iron  safe  will  not 
defeat  recovery  for  a  loss  under  the  policy  unless  it  is  pleaded  and  proven 
that  such  breach  contributed  to  the  loss.  Johnson  v.  Farmers'  Ins,   Co. 
126-565. 

A  provision  in  the  policy  that  the  removal  of  the  property  shall  be 
deemed  an  increase  of  the  risk  as  a  matter  of  law  is  void  in  view  of  the 
statutory  provision  that  the  breach  of  the  condition  as  to  removal  shall 
not  affect  the  validity  of  the  policy  unless  it  increases  the  risk.  The 
burden  is  on  the  insured  to  show  that  the  removal,  in  violation  of  the 
terms  of  the  policy,  did  not  cause  or  contribute  to  the  loss  but  the  burden 
is  on  the  company  to  show  as  a  matter  of  defense,  that  it  increased  the 
risk.  Adams  v.  Atlas  Mut.  Ins.  Co.,  135-299. 

This  section  does  not  apply  to  forfeitures  accrued  under  policies  pre- 
viously issued.     Elliott  v.  Farmer's  Ins.  Co.,  114-153. 


Ch.4,  T.  TX  TNSTTRANCE  OTHER  THAN  LIFE  41 


This  section  does  not  apply  to  provisions  making  void  the  policy  for 
vacancy  or  unoccupancy.     Cone  v.  Century  Fire  Ins.  Co.,  139-205. 

The  burden  is  on  the  plaintiff  to  show  that  a  change  of  occupancy,  if 
any,  in  violation  of  the  provisionw  of  the  jjolicy  di4  not  cause  or  con- 
tribute to  the  fire,  and  the  burden  is  on  the  defendant  to  show  that  such 
change,  if  any,  increased  the  risk,  teaman  v.  Anchor  Fire  Ins.  Co. 
149-583. 

This  section  has  relation  to  cases  where  there  is  provision  in  the  policy 
prohibiting  the  act  complained  of.  Where  there  is  no  such  provision,  the 
burden  does  not  rest  on  the  plaintiff  to  show  that  there  was  in  fact  not  an 
increase  of  hazard.  When  it  is  shown  that  the  insured  has  done  some  act 
prohibited  by  the  policy,  then  the  burden  rests  on  him  to  show  that  the 
violation  did  not  increase  the  hazard.  Kinney  v.  Farmers'  Miit.  F.  Ins. 
,Soc'y,  159-490. 

Prom  the  provision  of  this  section  it  is  evident  that  it  was  not  intended 
by  code  §  1750  to  invalidate  a  provision  in  a  policy  that  the  agent  shall 
bind  the  company  only  in  writing.  Mulrooney  v.  Royal  Ins.  Co.,  (C.  C.) 
1.57   F'ed.    598. 

See.  1744  (C.  C.  5660).  Notice  and  proof  of  loss— time  of 
bringing  action — provisions  not  affected  by  contract.  The  notice 
of  loss  and  proof  thereof  required  in  section  seventeen  ]uin- 
dred  forty-two  hereof,  and  the  notice  and  proof  of  loss  undei- 
oath  in  case  of  insurance  on  personal  property,  shall  be  given 
within  sixty  days  from  the  time  loss  occurred,  and  no  action 
for  such  loss  shall  be  begun  within  forty  daj'S  after  stich  notio(^ 
and  proofs  have  been  given  to  the  company,  nor  sliall  the  time 
within  which  action  shall  be  brought  be  limited  to  less  than  one 
year  from  the  time  when  a  cause  of  action  for  the  loss  accrues. 
No  provisions  of  any  polic}^  or  contract  to  the  contrary  shall 
affect  the  provisions  of  this  and  the  three  preceding  sections;  ])vr- 
vided,  however,  that  nothing  contained  in  this  section  or  in  sec- 
tion 1742-a,  supplement  to  the  code,  1913,  shall  be  so  construed  as 
to  prohibit  any  insurance  company  not  required  by  the  statutes 
of  Iowa  to  issue  a  standard  form  of  policy,  from  embodying, 
with  the  approval  of  the  commissioner  of  insurance,  in  any  in- 
surance contract  issued  by  it,  provisions  or  conditions  whi«^'li 
are  more  favorable  to  the  insured  than  those  authorized  in  said 
■statutes.  [38  G.  A.,  ch.  348,  §  5 :  27  G.  A.,  ch.  44,  §  1 :  18  G.  A., 
ch.  211,  §  3.] 

See  also  1742-42-a. 

The  statutory  requirement  as  to  notice  and  proofs  of  loss  is  all  that  can 
be  made  essential  by  the  contract.  A  notice  and  affidavit  are  sufficient  to 
constitute  the  proof  required.  The  sufficiency  of  the  document  is  not  de- 
pendent on  the  intent,  but  on  the  contents.  Parks  v.  Anchor  Mut.  F.  Ins. 
Co.,    106-402. 

This  statute  concerning  proofs  of  loss  supersedes  the  provisions  of  a 
policy  of  insurance  with  relation  to  the  same  matter.  Washburn-HaUiffan 
Coffee  Co..  v.  Merchants'  etc.  Fire  Insurance  Co.,  110-423. 

Cause  of  action  for  the  loss  accrues  forty  days  after  the  filing  of  notice 
and  proof  of  loss.  Payment  under  policy  is  not  due  until  forty  days 
after  the  filing  of  notice  and  proofs.  See  also  Matheson  v.  loioa  State 
Traveling  Men's  Assn.  180  Iowa  1035. 

Action  premature  and  abatable  when  brought  within  forty  days  after 
service  of  notice  and  proofs  of  loss.     This  period  of  statutory  immunity 


42  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


is  mandatory  and  is  not  waived  by  denial  of  liability.  Salmon  v.  Farm 
Property  Mut.  Ins.  Assn.   168  Iowa  521. 

Stipulations  in  a  policy  that  no  officer  or  agent  shall  have  power  to 
waive  any  provision  or  condition  of  the  policy,  except  such  asj)y  the  terms 
of  the  policy  may  be  subject  of  agreement  endorsed  thereon  or  added  there- 
to do  not  prevent  waiver  of  proofs  of  loss  by  an  officer  or  agent  having 
general  authority  to  do  so.  Such  a  stipulation  relates  to  the  conditions 
and  provisions  of  the  policy  and  not  to  their  performance.  Ibid,  and  Lake 
V.  Farmers'  Ins.  Co.,  110'-473. 

The  provisions  of  18  G.  A.  ch.  211,  §  3,  relating  to  proofs  of  loss,  as 
originally  enacted,  held  applicable  to  mutual  benefit  associations  as  well  as 
fire  insurance  companies.     Parsons  v.  A.  0.  U.  W.,  108-6. 

The  legislature  provides  the  character  and  kind  of  proofs  that  shall  be 
made  upon  the  happening  of  a  loss,  and  no  greater  proof  can  be  exacted; 
but  the  company  may  stipulate  for  less  than  is  required  by  the  statute  in 
this  respect.  Kinney  v.  Farmers'  Mut.  F.  his.  Soe'y.  159-490. 

Good  faith  requires  that  upon  receipt  of  proofs  of  loss,  if  the  company 
is  not  satisfied  therewith,  it  should  specify  its  objections  thereto  to  the  end 
that  the  proofs  may  be  perfected  if  possible,  and  if  the  company  fails  to 
specify  the  objections  at  a  time  when  they  might  be  remedied  it  should 
not  afterwards  be  heard  to  urge  them.  Dyer  v.  Des  Moines  Ins.  Co., 
103-524. 

The  action  of  the  company  in  asking  for  an  arbitration  to  determine  the 
amount  to  be  paid  is  a  waiver  of  defects  in  the  proofs  or  notice  of  loss 
known  to  the  company  before  the  arbitration  took  place.  Dee  d  Sons  Co. 
V.  Key  City  F.  Ins.  Co.,  104-167. 

Notwithstanding  a  provision  in  the  policy  that  none  of  its  terms  or  con- 
ditions can  be  waived  by  any  person  except  in  writing  by  the  secretary  of 
the  company^  and  that  no  agent  has  any  authority  to  waive  or  modify  any 
printed  conditions  of  the  policy,  an  adjusting  agent  having  power  to  deter- 
mine what  proofs  are  satisfactory  may  waive  those  proofs  which  are  re- 
garded unimportant,  although  certain  specified  proofs  are  required  by  the 
policy.     Brock  v.  Des  Moines  Ins.  Co.,  106-30. 

Failure  to  object  to  the  proofs  of  loss  because  not  accompanied  by  affi- 
davit, as  required,  amounts  to  a  waiver  of  objection  on  this  ground.  Prin- 
gle  V.  Des  Moines  Ins.  Co.,  107-742. 

Where  the  company  refuses  payment  on  the  ground  that  the  policy  has 
been  suspended  in  consequence  of  failure  to  pay  an  installment  of  pre- 
mium waiver  of  proofs  of  loss  may  be  inferred.  Pray  v.  Life  Indemnity 
d-  Security   Co.,  104-114;    Smith   v.  Continental  Ins.   Co..  108-382. 

Unqualified  refusal  to  pay  constitutes  a  waiver  on  the  part  of  the  in- 
surance company  of  proofs  of  death  where  something  purporting  to  be 
proofs  of  death  has  been  received  by  the  company  and  not  objected  to. 
Stephenson  v.  Bankers'  Life  Assn.,  108-637. 

The  promise  of  the  company  to  pay  is  as  effective  as  the  waiver  of 
proofs,  as  a  denial  of  liability  and  the  promise  of  settlement  is  incon- 
sistent with  insistence  on  strict  compliance  with  the  conditions  of  the 
contract.     Lake  v.  Farmers'  Ins.  Co.,  110-473. 

Telegrams  from  insured  advising  the  company  of  the  loss  and  giving 
it  all  information  which  the  insured  could  be  supposed  to  have  may  con- 
stitute sufficient  proof  of  the  loss  and  by  failing  to  object  for  want  of  an 
affidavit  to  such  proofs,  the  company  waives  the  requirement.  Nicholas  v. 
Iowa  Merch.  Mut.  Ins.  Co..  125-262. 

An  agent  having  power  to  adjust  a  loss  has  authority  to  waive  formal 
proofs  of  loss.     Lake  v.  Farmers'  Ins.  Co..  110-473. 

Where  the  adjuster  requires  the  procurement  of  duplicate  invoices, 
which  are  prepared  at  considerable  expense^  the  company  cannot  after- 
wards object  that  the  proofs  of  loss  are  not  sufficient.  If  the  conduct  of 
the  company  is  such  as  to  induce  the  insured  to  rest,  in  good  faith^  under 
the  well  founded  belief  of  strict  compliance  and  that  the  conditions  will 


Ch.  4.  T.  IX  INSURANCE  OTHER  THAN  LIFE 


not  be  insisted  on,  it  cannot  afterwards  set  up  nonyerforniance  of  such 
conditions  as  a  bar  to  recovery.  Ibid.  Corson  v.  Anchoi'  Mut.  F.  Ins.  Co.. 
113-641. 

Where  action  is  prematurely  brought  because  of  failure  of  insured  to 
demand  on  appraisement  he  cannot  cure  the  defect  in  his  proceeding  by 
subsequently  demanding  such  appraisal  and  setting  out  the  fact  in  the 
supplemental  petition.     Zaleski/  v.  Home  Ins.  Co.,  102-613. 

Although  in  the  second  action  it  is  claimed  that  the  first  action  was 
not  prematurely  brought,  this  will  not  sustain  the  second  action  brought 
after  the  period  of  limitation  under  the  policy  has  expired.  Wilhclmi  v. 
Des  Moines  Ins.  Co.,  103-532. 

Where  the  first  action  for  a  loss  under  a  policy  was  prematurely  brought 
and  subsequently  another  action  was  brought  after  the  time  limited  in  the 
policy  for  bringing  action  held,  that  the  second  action  was  not  to  be 
deemed  a  continuation  of  the  first  action  under  the  provisions  of  code 
^  3455.    Harrison  v.  Hartford  F.  Ins.  Co.,  67  Fed.,  298. 

The  provisions  of  18  G.  A.,  ch.  211,  as  to  time  of  bringing  action  were 
not  applicable  to  associations  organized  under  §  1160  of  the  code  of  '73, 
but  associations  collecting  premiums  instead  of  assessments  from  mem- 
bers were  not  properly  organized  under  that  section,  and  therefore  were 
subject  to  the  provisions  of  said  act  of  18  G.  A.  Bradford  v.  Mutual  Fire 
Ins.  Co.,  112-495. 

The  provision  of  this  section  as  to  time  of  bringing  suit  held  applicable 
to  a  loss  occurring  prior  to  the  taking  effect  of  the  code,  when  the  stat- 
ute provided  that  suit  should  not  be  brought  within  ninety  days.  Such 
a  statutory  provision  relates  to  the  remedy  and  is  not  part  of  the  con- 
tract.   Jones  V.  German  Ins.  Co..  110-75. 

The  defense  that  action  on  a  policy  is  not  brought  within  the  statutory 
period  specified  in  the  contract  is  one  w'hich  must  be  affirmatively  intro- 
duced otherwise  it  will  be  deemed  waived.  Miller  Brewing  Co.  v.  Capital 
Ins.  Co.,  111-590. 

Pi'ior  to  the  adoption  of  this  section  it  was  lawful  for  the  parties  to 
create  a  contract  limitation  which  w^ould  be  binding  on  the  courts,  and  un- 
der this  section  the  parties  may  contract  as  before,  provided  the  limita- 
tion fixed  by  them  is  not  less  than  one  year.  Farmers'  Co-op.  Creamery 
Co.  V.  Iowa  State  Ins.  Co.,  112-608. 

The  change  in  the  statute  is  not  applicable  to  contract  limitations  un- 
der a  policy  executed  before  the  change  in  the  statute,  and  which  were 
valid  when  made.     Ibid. 

The  time  within  which  action  on  a  policy  may  be  brought  cannot  by 
stipulation  be  limited  to  less  than  one  year  from  the  time  when  a  cause  of 
action  has  accrued.     Kenny  v.  Bankers'  Ace.  Ins.  Co.,  136-140. 

An  action  is  premature  and  abatable  when  brought  within  forty  days 
after  service  of  the  notice  of  loss  and  proof  thereof  under  a  mutual  policy 
of  insurance  issued  under  Cli.  5,  Title  9,  Supp.  Code,  1913,  even  though 
the  company  during  said  forty  days  denies  all  liability  under  the  policy. 
Salmon  v.  Farm  Property  Mut.  Assn.,  168  la.  521. 

The  limitation  contained  in  this  section  as  to  the  time  for  bringing  the 
action  pertains  to  the  remedy,  and  cannot  be  controlled  by  stipulations  in 
the  policy  of  insurance.  Vore  v.  Hawkeye  Ins.  Co.,  76-548;  Wilhelmi  v. 
Des  Moines  Ins.  Co.,  86-326;  Worley  v.  State  Ins.  Co.,  91-150. 

These  provisions  as  to  the  time  when  action  may  be  brought  for  the 
loss,  are  applicable  to  actions  for  loss  of  goods  as  well  as  for  loss  by  reason 
of  damages  to  the  realty.     Wilhelmi  v.  Des  Moines  Ins.  Co..  86-326. 

Action  cannot  be  brought  before  the  expiration  of  the  time  fixed,  even 
on  the  refusal  of  the  company  to  pay.  Quinn  v.  Capital  Ins.  Co.,  71-615; 
Finster  v.  Merchants'  d-  Bankers'  Ins.  Co.,  97-9. 

Making  proofs  and  giving  notice  within  the  prescribed  time  constiUite 
conditions  precedent  to  the  right  of  action.  Ruthven  v.  American  F.  Ins. 
Co,.  92-316. 


44  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


The  requirement  of  the  statute  as  to  the  time  within  which  an  action 
on  the  policy  may  not  be  brought  cannot  be  waived  and  a  suit  within  the 
prescribed  period  is  premature.     Blood  v.  Haivkeye  Ins.  Co.,  103-728. 

The  effect  of  this  provision  as  to  the  time  when  action  may  not  be 
brought  is  to  fix  the  time  when  the  loss  becomes  due  and  payable.  It  does 
not  affect  the  maturity  of  the  contract,  but  is  a  legislative  prohibition  of 
the  action  before  the  time  specified,  and  if  action  is  brought  before  the  ex- 
piration thereof  it  is  prematurely  brought  and  must  fail.  The  objection 
may  be  raised  by  motion  in  arrest  of  judgment,  without  being  pleaded  as 
a  defense.     Taylor  v.  Merchants'  &  Bankers'  Ins.  Co..   83-402. 

Where  an  amended  petition  properly  setting  out  the  cause  of  action, 
was  filed  before  the  expiration  of  the  time  for  bringing  action  and  de- 
murred to_  held,  that  the  company  had  sufficient  notice  of  the  amendment 
so  that  the  cause  of  action  set  up  therein  must  be  deemed  to  have  been 
brought  within  the  proper  time.     Jamison  v.  State  Ins.  Co.,  85-229. 

This  section  with  reference  to  time  after  which  action  may  be  brought 
is  applicable  to  life  insurance.    Christie  v.  Life  Indemnity,  etc.,  Co.,  82-360. 

Therefore  held,  that  an  action  commenced  on  a  certificate  in  a  benefit 
company  within  sixty  days  after  presenting  notice  of  loss  was  prematurely 
brought  and  would  be  abated.    Iltid. 

Also  held,  that  these  provisions  were  not  unconstitutional  on  the  ground 
that  the  subject  matter  was  not  expressed  in  the  title  or  that  the  act  em- 
braced more  than  one  subject,  or  that  it  wa«  not  of  uniform  operation. 
IMd. 

If  defendant  claims  that  by  reason  of  the  proofs  of  loss  not  being  suf- 
ficient the  action  is  prematurely  brought,  he  should  set  that  out  in  a  dis- 
tinct division  of  his  answer  and  not  in  connection  with  the  defense  that 
the  defendant  cannot  recover  by  reason  of  defective  proofs.  McCovit)  v. 
Council  Bluffs  Ins.   Co.,   83-247. 

The  fact  that  a  suit  had  been  prematurely  brought  and  is  subsequently 
dismissed  on  that  ground  does  not  entitle  the  plaintiff  to  institute  another 
suit  after  the  time  limited  statutory  provision  as  to  the  time  in  which 
action  may  be  brought.     Vore  v.  Haivkeye  Ins.  Co.,  76-548. 

The  fact  that  another  action  on  the  policy  would  be  barred  by  reason  of 
limitations  in  the  policy  as  to  time  of  bringing  action  will  not  estop  the 
company  from  insisting  that  an  action  commenced  within  the  prescribed 
period  is  prematurely  brought,  and  that  plaintiff  cannot  recover  therein. 
Ibid. 

The  person  who  thus  maintains  an  action  prematurely  brought  is  neg- 
ligent, within  the  provisions  of  §  3455.  Wilhelmi  v.  Des  Moines  Ins.  Co.. 
86-326. 

Where  an  action  was  brought  in  proper  time  upon  a  policy  of  insurance, 
but  subsequently  on  discovery  that  the  property  was  niisdescribed,  such 
action  was  dismissed  and  an  action  in  equity  to  reform  the  policy  and  re- 
covery thereunder  was  commenced  within  a  reasonable  time,  held,  that 
such  second  action  would  not  be  barred  under  the  provisions  of  the  policy 
with  reference  to  time  for  bringing  action  thereon.  Jacobs  i\  St.  Paul  F. 
t£  M.  Ins.  Co.,  86-145. 

The  objection  that  the  suit  was  prematurely  brought  may  be  raised  by 
motion  in  arrest  of  judgment  and  is  not  waived  by  failure  to  interpose  it 
earlier  in  the  progress  of  the  case.    Woodcock  ik  Haivkeye  Ins.  Co..  97-562. 

A  provision  in  the  policy  for  arbitration  in  case  of  disagi'eement  as  to 
the  amount  of  loss  does  not  make  an  arbitration  a  condition  precedent  to 
the  bringing  of  an  action.  Lesure  Lumber  Co.  v.  Mutual  F.  Ins.  Co..  101- 
514. 

But  as  to  whether  appraisement  may  be  made  an  absolute  condition  to 
the  rigkt  of  action,  quaere.  Zalesky  v.  Home  Ins.  Co..  102-613;  108-341; 
114-516. 

Where  the  court  acquired  jurisdiction  of  the  action  only  by  appearance 
of  the  defendant,  held  that  the  action  was  to  be  deemed  commenced  only 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  45 


when  defendant  appeared.  Lesure  Lumber  Co.  v.  Mutual  F.  Ins.  Co.,  101- 
514. 

The  notice  of  proofs  of  loss  herein  contemplated  include  the  affidavits 
showing  the  facts  in  regard  to  the  loss  which  must  accompany  such  notice 
and  proofs  and  mere  notice  is  not  sufficient  to  determine  the  commence- 
ment of  the  period  within  which  suit  cannot  be  brought.  Wilhelmi  v.  Des 
Moines  Ins.  Co..  86-L52G. 

Where  a  petition  in  an  action  on  a  policy  of  fire  insurance  stated  that 
the  loss  occurred  "on  or  about  April  14,  1886"  and  that  notice  and  proofs 
of  loss  were  given  "on  or  about  June  19,  1886,"  held,  that  the  petition  did 
not  show  that  more  than  sixty  days  had  intervened  between  the  loss  and 
the  notice  and  proof  thereof.    District  Tp.  v.  Des  Moines  Ins.  Co.,  75-647. 

The  time  of  limitation  fixed  by  the  policy  is  not  extended  where  proofs 
are  neither  furnished  nor  waived.     Cornett  v.  Phenix  Ins.  Co.,  67-388. 

The  statutory  requirement  as  to  notice  and  proofs  of  loss  is  all  that 
can  be  made  essential  by  the  contract.  A  notice  and  affidavit  are  sufficient 
to  constitute  the  proof  required.  The  sufficiency  of  the  document  is  not 
dependent  on  the  intent  but  on  the  contents.  Parks  v.  Anchor  Mut.  F.  Ins. 
Co.,  106-402. 

The  defense  that  action  on  a  policy  is  not  brought  within  the  statutory 
period  specified  in  the  contract  is  one  which  must  be  affirmatively  intro- 
duced, otherwise  it  will  be  deemed  waived.  Miller  Brewing  Co.  v.  Capital 
Ins.  Co.,  111-590. 

The  provision  of  this  section  as  to  time  of  bringing  suit  held  applicable 
to  a  loss  occurring  prior  to  the  taking  effect  of  the  Code,  when  the  statute 
provided  that  suit  should  not  be  brought  within  ninety  days.  Such  a 
statutory  provision  relates  to  the  remedy,  and  is  no  part  of  the  contract. 
Jones  V.  German  Ins.  Co.,  110-75. 

Prior  to  the  adoption  of  this  section  it  was  lawful  for  the  parties  to 
create  a  contract  limitation  which  would  be  binding  on  the  courts,  and 
under  this  section  the  parties  may  contract  as  before,  provided  the  limi- 
tation fixed  by  them  is  not  less  than  one  year.  Farmers'  Co-op.  Creamery 
Co.  V.  Iowa  State  Ins.  Co.,  112-608. 

•  The  change  in  the  statute  is  not  applicable  to  contract  limitations 
under  a  policy  executed  before  the  change  in  the  statute,  and  which 
were  valid  when  made.    Ibid. 

Where  action  is  prematurely  brought  because  of  failure  of  insured  to 
demand  an  appraisement  he  cannot  cure  the  defect  in  his  proceeding  by 
subsequently  demanding  such  appraisal  and  setting  out  the  fact  in  the 
supplemental  petition.    Zalesky  v.  Home  Ins.  Co.,  102-613. 

Although  in  the  second  action  it  is  claimed  that  the  first  action  was 
not  prematurely  brought,  this  will  not  sustain  the  second  action  brought 
after  the  period  of  limitation  until  the  policy  has  expired.  Wilhelmi  v. 
Des  Moines  Ins.  Co.^  103-532. 

Where  the  first  action  for  a  loss  under  a  policy  was  prematurely  brought 
and  subsequently  another  action  was  brought  after  the  time  limited  in 
the  policy  for  bringing  action,  held,  that  the  second  action  was  not  to  be 
deemed  a  continuation  of  the  first  action  under  the  provisions  of  Code 
§  3455.     Harrison  v.  Hartford  F.  Ins.  Co.,  67  Fed.,  298. 

Sec.  1745  (C.  C.  5661).  Forms  of  policies.  The  I'oiiu  ol'  all 
policies  or  permits  issued  or  pi'oposed  to  be  issued  by  any  insur- 
ance company  doing-  business  in  lliis  state  under  the  provisions 
of  this  chapter,  shall  first  be  «'xanjined  and  approved  by  the  com- 
missioner of  insurance.  Sucli  commissioner  shall  refuse  1o  au- 
thorize it  to  do  business  or  to  renew  its  permission  to  do  busi- 
ness when  the  form  of  policy  issued  or  jn-oposed  to  be  issued 
does  not  provide  for  the  cancellation  of  the  same  at  the  reciuest 

i 


46  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

of  the  insured  upon  equitable  terms,  and  the  return  to  the  in- 
sured of  any  premium  paid  in  excess  of  the  customary  short  rates 
for  the  insurance  up  to  the  time  of  cancellation,  or  the  release  of 
the  insured  from  any  liability  beyond  such  short  rates,  or  for 
losses  after  the  cancellation  of  the  polic}^  if  the  insurance  be 
in  a  mutual  company ;  and  in  case  any  company  or  association 
shall  issue  any  policies  not  containing  such  provision,  it  shall 
be  the  duty  of  the  commissioner  to  revoke  the  authority  of  such 
companv  or  association  to  do  business.  [38  G.  A.,  ch.  348,  ^  6; 
34  G.  A.,  ch.  18,  §  8;  17  G.  A.,  ch.  39,  §  1.] 

Form  of  Standard  Fire  Policy  1758a.     Life  1783a. 

The  provision  of  a  policy  for  cancellation  by  the  insured  should  not  be 
construed  as  requiring  repayment  of  premiums  by  the  company  before 
such  cancellation  can  become  effective.  Parsons  v.  Northicesteni  Nat.  his. 
Co..  133-532. 

The  language  of  the  policy  of  insurance  is  to  be  given  its  ordinary  and 
popular  signification  rather  than  its  technical  meaning,  and  that,  when 
capable  of  two  constructions,  it  is  to  be  given  that  which  is  most  favor- 
able to  the  insured.  Vorse  v.  The  Jersey  Plate  Glass  Ins.  Co.,  119-555. 

An  insurance  company  cannot  reduce  the  amount  of  a  policy  issued  to 
assured  by  merely  writing  him  a  letter  stating  that  it  was  obliged  to  re- 
duce its  risk  from  $1,250  to  $500,  and  enclosing  a  slip  to  that  effect,  with 
a  request  that  it  be  attached  to  the  policy,  without  proof  that  after  the 
receipt  of  such  letter  the  insured  acquiesced  in  such  reduction.  McLean 
V.  American  Mut.  Fire  Ins.  Co.,  122-355. 

Sec.  1746  (C.  C.  5662).  Other  insurance — coinsurance  clause — 
prorating.  Airy  provision,  contract  or  stipulation  contained  in 
any  polic}'  of  insurance,  issued  b}^  any  insurance  company  doing 
business  in  the  state  under  the  provisions  of  this  chapter,  provid- 
ing or  stipulating  that  the  insured  shall  maintain  insurance  oh 
any  property  coA^ered  by  such  policy  to  any  extent,  or  shall  to 
any  extent  be  an  insurer  of  the  property  insured  in  such  policy, 
or  shall  bear  any  portion  of  the  loss  on  the  property  insured, 
shall  be  void ;  and  the  commissioner  of  insurance  shall  refuse  to 
authorize  any  such  company  to  do  business  or  to  renew  the 
authority  or  the  certificate  of  diWj  such  company  when  the  form 
of  policy  issued  or  proposed  to  be  issued  contain  any  such  pro- 
vision, contract  or  stipulation;  ]3rovided,  that  upon  the  written 
request  of  anj^  person  desiring  insurance,  a  rider  providing  for 
coinsurance  may  be  attached  to  and  become  a  part  of  the  policy, 
but  in  no  case  shall  such  rider  apply  to  dwellings  or  farm  prop- 
erty. The  request  for  the  application  of  the  coinsurance  clause 
or  rider  to  any  policy  of  insurance  shall  be  written  or  printed  on 
a  single  sheet  of  paper  Avhich  shall  contain  nothing  but  the  re- 
quest liereinafter  set  out,  and  said  request  must  be  signed  by  tlie 
insured  and  a  copy  thereof  be  left  with  him  by  the  agent  at  Hie 
time  the  insurance  is  applied  for.  No  form  of  request  for  coin- 
surance except  the  following  shall  be  used  by  any  company  doing 
business  within  this  state: 

REQUEST  FOR  THE  APPLICATION  OF  THE  COINSURANCE  CLAUSE 
In  consideration  of  a  reduction  from  the  established  rate  of per 


Ch.  4,  T.  IX  INSURANCE  OTHER  TITAN  LIFE  47 


cent,  to per  cent,  in  premiums  to  be  paid  to  the 

insurance  company  for  insurance  upon  the  following  described   property 


1  hereby  request  that  a  coiiisui'ance  rider  lie  attiichcd  to  tlie  policy  to  he 
issued  by  said  company  and  hereby  agree,  that  during  the  life  of  the 
policy  I  will  maintain  insurance  on  said  property  to  the  extent  of  at  least 

dollars,  (or)    per  cent,  (whichever  may  be 

agreed  upon)  of  the  actual  cash  value  thereof  at  the  time  of  fire,  and  that 
failing  to  do  so,  I  shall  become  a  coinsurer  to  the  extent  of  such  deficit. 
Before  signing  this  request  or  the  coinsurance  rider  to  be  attached  to 
the  policy  to  be  issued  I  carefully  read  each  of  them  and  fully  understand 
that  in  case  I  shall  fail  to  maintain  insurance  on  the  previously  describea 
property  to  the  extent  above  provided,  then  in  the  event  of  loss  or  damage 
this  company  shall  not  be  liable  for  a  greater  i)er  cent,  of  the  loss  or  dam- 
age to  said  property  than: 

1.  The  total  amount  of  insurance  maintained  bears  to    

dollars,  or: 

2.  The  total  amount  of  insurance  maintained  bears  to 

per  cent,  of  the  actual  cash  value  of  the  property  insured  at  the 
time  of  fire. 

Date    Insured. 

The  coiiisuranoo  rider  to  be  used  shall  be  signed  by  both  tlie 
agent  and  the  insured  and  a  copy  thereof  shall  be  left  witli  tlie 
insured  at  the  time  the  application  is  made  for  insurance.  The 
rider  shall  be  in  form  and  restrictions  as  follows: 

IOWA   COINSURANCE   AND   REDUCED  RATE    CLAUSE 
(This  clause  must  be  signed  by  both  the  insured  and  the  agent.) 
In  consideration  of  the  acceptance  by  the  insured  of  a  reduction  in  pre- 
miums from  the  established  rate  of per  cent,  to per  cent,^ 

it  is  hereby  agreed  that  the  insured  shall  maintain  insurance  during  the 
life  of  this  policy  upon  the  property  insured: 

1.  To  the  extent  of    dollars,   or 

2.  To  the  extent  of  at  least ])er  cent,  of  the  actual  cash  value 

thereof  at  the  time  of  fire  (whichever  may  be  agreed  upon)  and, 
that  failing  to  do  so  the  insured  shall  be  a  coinsurer  to  the  ex- 
tent of  such  deficit. 

This  clause,  at  the  request  of  the  insured,  is  attached  to  and  forms  part 
of  policy  number of  the  insurance  com- 
pany of and  shall  in  no  case  apply  to  dwellings 

or  farm  property,  nor  to  any  risk  wherein  the  total  value  of  the  property 
shall  be  less  than  twenty-five  thousand  dollars^  except  grain  elevators  and 
grain  warehouses,  and  the  contents  of  the  same. 

Insured. 

Agent. 

Date   

No  condition  or  stipulation  in  a  policy  of  insurance  fixing  the 
amount  of  liability  or  recoveiy  under  such  policy  witli  reference 
to  prorating  with  other  insurance  on  property  insured  shall  be 
A-alid  except  as  to  other  valid  and  collectible  insurance,  any 
agreement  to  the  contrary  notwithstanding.  [37  G.  A.,  ch.  IS."), 
§  1;  34  G.  A.,  ch.  79,  §  l';  25  G.  A.,  ch.  31.] 

The  average  clause  is  not  prohibited  by  section  1746  nor  section  1758a 
to  d.     Dahms  d  Son  v.  German  Fire  Ins.  Co.  153  la.  168. 

Sec.  1747  (C.  C.  5663).     Doing  business  without  compliance. 


4S  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 

Every  insurance  company  organized  under  the  laws  of  or  doing 
business  in  this  state  shall  conform  to  all  the  provisions  of  this 
chapter  and  to  other  laws  of  this  state,  whether  now  existing 
or  hereafter  enacted,  applicable  thereto,  and  when  necessary 
any  existing  company  shall  change  its  charter  and  by-laws  so 
as  to  conform  thereto,  by  a  vote  of  a  majority  of  its  board  of 
directors.  Any  officer,  manager  or  agent  of  any  insurance  com- 
pany or  association  who,  with  knowledge  that  it  is  doing  business 
in  an  unlawful  manner,  or  is  insolvent,  solicits  insurance  with 
said  company  or  association,  or  receives  applications  therefor,  or 
does  any  other  act  or  thing  towards  procuring  or  receiving  any 
new  business  for  such  company  or  association,  shall  be  quilty  of 
a  misdemeanor  and  for  every  such  act,  on  conviction  thereof, 
shall  be  adjudged  to  paj^  a  fine  of  not  less  than  one  hundred  nor 
more  than  one  thousand  dollars,  or  be  imprisoned  in  the  county 
jail  not  exceeding  one  year,  or  be  punished  by  both  such  fine 
and  imprisonment.      [C.   '73,  §  1147.] 

See  1715-24-26-55.     Life  1796.     Applicable  1821d.     Fraternal  1832-37-39(1. 

This  does  not  prevent  the  officers  of  a  company  which  has  not  com- 
plied with  the  law  from  reinsuring  their  risks  in  another  company  and 
transferring  to  such  company  the  premium  notes  received  therefore. 
Davenport  F.  Ins.  Co.  v.  Moore,  50-619. 

Sec.  1748  (C.  C.  5664).  Officers  punished.  Any  president,  sec- 
retary or  other  officer  of  any  company  organized  under  the  laws 
of  this  state,  or  any  officer  or  person  doing  or  attempting  to  do 
business  in  this  state  for  any  insurance  company  organized 
either  within  or  without  this  state,  failing  to  comply  with  any  of 
the  requirements  of  this  chapter,  or  violating  any  of  the  pro- 
visions thereof,  .shall  be  guilty  of  a  misdemeanor,  and  upon  con- 
viction thereof  shall  be  fined  in  a  sum  not  exceeding  one  thou- 
sand dollars,  and  be  imprisoned  in  the  county  jail  for  a  period 
not  less  than  thirty  days  nor  more  than  six  months.   [Same.] 

Sec.  1749  (C.  C.  5665).  Advertisements — soliciting  agents. 
Every  agent  of  any  insurance  company  shall,  in  all  advertise- 
ments of  such  agency,  publish  the  location  of  the  company,  giv- 
ing the  name  of  the  city,  town  or  village  in  which  it  is  located, 
and  the  state  or  government  under  the  laws  of  which  it  is  or- 
ganized. Any  person  who  shall  hereafter  solicit  insurance  or 
procure  application  therefor,  shall  be  held  to  be  the  soliciting 
agent  of  the  insurance  company  or  association  issuing  a  policy 
on  such  application  or  on  a  renewal  thereof,  anything  in  the 
application,  policv  or  contract  to  the  contrary  notwithstanding. 
[C.  '73,  §  1148.]  * 

See  1725-50     Life  1800-l-14-15-21k,  1.     Fraternal  1833-37. 

An  agent  instructed  to  procure  insurance  is  liable  to  his  principal  for 
any  loss  resulting  from  procuring  insurance  in  a  company  not  authorized 
to  do  business  in  the  state.    Hartman  v.  Hollowell,  126-643. 

Sec.  1750  (C.  C.  5735).  Who  deemed  agents.  The  term  agent 
used  in  the  foregoing  sections  of  this  chapter  shall  include  any 


Ch.  4,  T.  IX  INSURANCE!]  OTHER  THAN  LIFE  49 

other  person  who  shall  in  any  manner  directly  or  indirectly 
transact  the  insui'ance  'business  {'t)i-  nny  insurance  company 
complying"  with  the  laws  of  this  stale.  Aii>  officer,  aj^ciit  or  rep- 
resentative ol*  an  insurance  company  (loin<4'  business  in  lliis  stale 
who  may  solicit  insurance,  procure  applications,  issue  policies, 
adjust  losses  or  transact  the  business  generally  of  such  companies, 
shall  be  held  to  be  the  agent  of  such  insurance  company  with 
authority  to  transact  all  business  within  the  scope  of  his  em- 
ployment, anything  in  the  application,  policy,  contract,  by-laws 
or  articles  of  incorporation  of  such  company  to  the  contrary  not- 
withstanding, but  members,  of  mutual  assessment  associations 
wiiich  pay  no  commission,  reward  or  gratuity  for  the  procuring 
of  applications  for  membership,  the  income  of  which  associations 
is  derived  solely  from  assessments,  dues  and  fees  collected  from 
its  members  for  the  sole  purpose  of  meeting  loss  and  expenses, 
shall  not  be  deemed  to  be  agents  under  anv  section  of  this  chap- 
ter.    [39  G.  A.,  ch.  123,  §  1;  18  G.  A.,  ch'  211,  §  l.j 

See  1725-49.     Life  ]800-l-14-15-21k,  1.     Fraternal  1833-37. 

A  soliciting  agent  with  power  to  take  and  forward  applications  and 
receive  money  to  be  paid  when  the  insurance  is  effected,  does  not  have 
authority  to  bind  the  company  by  declarations  as  to  the  validity  of  the 
contract  of  insurance  or  as  to  the  rights  and  liabilities  of  the  company, 
when  such  declarations  are  not  made  while  discharging  his  duties  as 
agent  in  the  transaction  in  question.  Schoep  v.  Bmikos'  Allianre  Tna. 
Co.,  104-354. 

An  adjusting  agent  with  authority  to  ascertain  and  settle  losses  has 
of  necessity  power  to  determine  what  proofs  are  satisfactory  and  to  waive 
those  which  are  regarded  as  unimportant.  Brock  v.  Bos  Moines  Ins.  Co., 
106-30. 

Section  applied.  McMastcr  v.  Ncio  York  L.  Ins.  Co.,  78  Fed.,  s.  c 
90  Fed.,  40;  s.  c.  99  Fed.,  856. 

An  agent  having  the  power  to  transact  all  the  business  within  the 
apparent  scope  or  usual  extent  of  his  employment  in  issuing  policies  may 
waive  the  conditions  of  a  policy  as  to  incumbrances,  notwithstanding  a 
provision  in  the  policy  denying  such  authority  to  the  agent.  Liquid  Car- 
honic  Acid  Mfg.  Co.  v.  Phoenix  Ins.  Co.,  126-225. 

One  soliciting  insurance  and  taking  applications  therefor  is  the  agent 
of  the  company  issuing  the  policy,  without  regard  to  any  provisions  found 
in  the  policy.     Continental  L.  Ins.  Co.  v.  Chamherlain,  132  U.  S.  304. 

This  provision  is  applicable  to  life  insurance  companies.    Ityid. 

It  is  a  matter  of  general  knowledge  that  the  soliciting  agent  as  a  rule 
prepares  the  application  for  the  owner,  and  what  he  does  in  that  respect 
is  within  his  powers  and  binds  his  principal.  Jamison  v.  State  Ins.  Co., 
85-229. 

An  insurance  company  is  chargeable  with  knowledge  of  facts  macTe 
known  to  its  agent  at  the  time  of  taking  the  application,  and  an  instruc- 
tion requiring  more  proof  of  the  agent's  authority  than  was  necessary, 
held  not  prejudicial  to  defendant,  although  erroneous.  Key  v.  Des  Moines 
Ins.  Co..  77-174. 

Under  these  provisions,  held,  that  the  agent  af  one  company,  who,  by 
authority  of  his  customer,  applied  to  an  agent  of  another  company  author- 
ized to  issue  policies,  for  insurance  on  the  property  of  his  customer,  was 
the  agent  for  the  company  issuing  the  policy,  and  a  mistake  as  between 
him  and  the  agent  issuing  the  policy  was  chargeable  to  the  company,  and 
not  to  the  person  for  whose  benefit  the  policy  was  issued.  »S7.  Paul  F\  d 
M.  Ins.  Co.  V.  Shaver,  76-282. 


50  INSURANCE  OTHER  THAN  LIFE  Ch.  4.  T.  IX 

If  the  laws  of  the  state  make  the  agent  soliciting  or  negotiating  insur- 
ance the  agent  of  the  company  issuing  the  policy  no  condition  in  the 
policy  in  terms  making  such  agent  the  agent  of  the  assured  only,  will 
be  valid.     Fred  Miller  Breicing  Co.  v.  Council  Bluffs  Ins.  Co.,  95-31. 

Where  an  insurance  agent  in  Wisconsin  negotiated  for  insurance  on 
property  in  that  state  through  an  insurance  agent  in  another  state  with- 
out designating  the  company  in  which  the  insurance  should  be  taken  and 
the  second  agent  placed  the  insurance  in  a  foreign  company,  held  that  the 
first  agent  became,  under  the  laws  of  Wisconsin,  the  agent  of  the  com- 
pany in  which  the  insurance  was  placed  in  such  sense  that  notice  of 
the  suit  against  the  company  might  be  served  upon  such  agent  so  as  to 
give  the  Wisconsin  courts  jurisdiction  of  such  suits.  Ibid. 

An  adjuster  of  losses  has  authority  to  waive  conditions  affecting  the 
validity  of  the  policy.     Arispe  Mercantile  Co.  v.  Gueen  Ins.   Co.,  141-607, 

Knowledge  by  a  soliciting  agent  of  the  existence  of  other  insurance 
is  a  waiver  of  a  stipulation  against  such  insurance.  Halzman  v.  Machin- 
ery Mut.  Ins.  Assn.,  142-99. 

Assured  is  justified  in  relying  on  advice  and  assistance  of  a  soliciting 
agent  in  preparing  his  application  and  the  language  will  be  given  a 
reasonable  construction  in  favor  of  assured  in  order  to  avoid  forfeiture  on 
technical  grounds.  Buchnam  v.  Inter-State  Business  Men's  Accident  As.sn., 
183  Iowa,  652. 

A  company  is  chargeable  with  notice  of  other  insurance  of  which  the 
soliciting  agent  has  knowledge.     Wilson  v.  Anchor  Ins.  Co.,  143-458. 

An  insurance  company  is  not  chargeable  with  notice  of  other  insur- 
ance on  the  part  of  a  soliciting  agent  where  the  only  scope  of  such  agent's 
employment  was  to  return  the  policy  for  correction.  Scridner  v.  Anchor 
F.  Ins.  Co.,  144-328. 

If  an  agent  has  knowledge  of  past  conditions  or  existing  facts  avoiding 
a  policy  which  is  secured  by  him,  a  company  issuing  a  policy  with  such 
knowledge  on  the  part  of  its  agent  cannot  insist  upon  these  facts  for 
the  purpose  of  avoiding  it;  but  knowledge  by  a  soliciting  agent  of  the 
intention  to  violate  some  condition  of  the  policy  in  the  future  is  not 
binding  upon  the  company.     House  v.  Security  F.  Ins.  Co.,  145-462. 

An  adjuster  of  losses  can  waive  compliance  with  the  provisions  of  the 
policy  requiring  the  insurer  to  separate  the  damaged  from  the  undamaged 
goods.     Farrncr.s'  Mercantile  Co.  v.  Farmers'  Ins.  Co.,  161-5. 

Even  though  the  secretary  of  a  mutual  company  has  no  authority  to 
agree  to  the  removal  of  property  beyond  the  limits  of  the  county  in  which 
the  association  has  authority  to  take  risks,  if  after  notice  to  the  secretary 
of  such  removal  the  association  makes  assessments  on  the  policy,  the 
prohibition  of  the  policy  against  removal  is  waived.  Kesler  v.  Farmers' 
Mut.  F.  &  L.  Ins.  Assn.,  160-374. 

Provisions  of  the  policy  are  valid,  notwithstanding  this  section,  which 
prescribe  the  manner  in  which  the  local  agent  shall  exercise  his  authority 
so  as  to  bind  the  company.  Mulrooney  v.  Royal  Ins.  Co.  (D.  C.)  157  Fed. 
598,    (C.   C.  A.)    163  Fed.   833. 

Sec.  1751  (C.  C.  5666).     Provisions  applicable  to  associations. 

The  provisions  of  the  foregoing  sections  relative  to  insurance 
companies  shall  apply  to  all  such  companies,  partnerships,  as- 
sociations or  individuals,  whether  incorporated  or  not.  1 C.  "73,  § 
1147.] 

Sec.  1752  (C.  C.  5667).  Fees.  There  shall  be  paid  to  the  com- 
missioner of  insurance  for  services  re(|uired  under  the  provisions 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  51 

of  this  chapter  the  following  fees,  which  shall  be  accounted  for 
by  him  in  the  same  manner  as  other  fees  received  in  the  discharge 
of  the  duties  of  his  office : 

1.  For  filing  and  examination  of  the  first  application  of  any  company 
and  accompanying  articles  of  incorporation  for  organization  in  this  state, 
and  the  issuing  of  the  permission  to  do  business,  ten  dollars; 

2.  For  filing  application  of  any  foreign  company  for  certificate  to  do 
business  in  this  state  and  the  accompanying  certified  copy  of  charter  or 
article    of    incorporation,    twenty-five    dollars; 

3.  For  permission  to  foreign  company  to  do  business  in  this  state,  or 
certified  copy  thereof,  two  dollars; 

4.  For  filing  annual  statement  of  a  domestic  company,  and  issuing  the 
renewal  of  the  permission  required  by  law  to  authorize  continuance  in 
business;  three  dollars; 

5.  For  filing  annual  statement  of  a  foreign  company,  twenty  dollars, 
and  issuing  renewal  of  permission,  two  dollars; 

6.  For  each  certificate  of  authority  to  agent  of  foreign  company,  two 
dollars; 

7.  For  each  certificate  of  authority  to  agent  of  domestic  company,  fifty 
cents; 

8.  For  every  copy  of  any  paper  filed,  the  sum  of  twenty  cents  per 
folio,  and  for  affixing  the  official  seal  to  such  copy  and  certifying  the 
same,  one  dollar; 

9.  For  each  certificate  for  publication  of  foreign  companies,  two  dol- 
lars, and  for  each  certificate  for  publication  of  Iowa  companies,  fifty  cents, 
[27  G.  A.  ch.  45,  §§  1,  2,  3.     C.  '73,  §  1153.] 

See  1818,  as  to  life  companies  and  associations. 

Sec.  1753  (C.  C.  5668).  Expenses  of  examination.  The  nec- 
essary expenses  of  anj^  examination  of  any  insurance  company 
made  or  ordered  to  be  made  by  the  commissioner  of  insurance 
under  this  chapter  shall  be  certified  to  by  him,  and  paid  on  his 
requisition  by  the  company  so  examined;  and  in  case  of  failure 
of  the  compan}^  to  make  such  payment  the  commissioner  shall 
suspend  such  company  from  doing  business  in  this  state  until  sucli 
expenses  are  paid.  If  such  expenses  are  not  paid  by  the  com- 
pany, they  shall  be  audited  by  the  executive  council  and  paid 
out  of  the  state  treasury.  But  in  no  case  shall  any  foreign  in- 
surance company  be  examined  except  bv  order  of  the  executive 
council.        [16  G.  A.,  ch.  37;  C.   '78,  §  1156.] 

See  1700-31-55.     Life  1777.    Applicable  1S21  a  to  g.     Fraternals  1839b,  c. 

Sec.  1754  (C.  C.  5669).  Combinations.  It  shall  l)e  unlawful 
for  two  or  more  insurance  companies  doino-  busiiu'ss  in  this  state, 
or  for  the  officers,  agents  or  employes  of  such  companies,  to  make 
or  enter  into  any  combination  or  aj^reement  relatin*!:  to  the  rates 
to  be  charged  for  insurance,  the  amount  of  commissions  to  be 
allowed  agents  for  procuring  the  same,  or  tlie  manner  of  Irans- 
acting  the  insurance  business  within  Ihis  state;  and  any  such  com- 
pany, officer,  agent  or  employe  violating  this  provision  shall  be 
guilty  of  a  misdemeanor,  and  on  (•on\ic1ion  thereof  shall  i)ay  a 


52  INSURANCE  OTHER  THAN  LIFE  Cli.  4,  T.  IX 

l^enalty  of  not  less  than  one  hundred  dollars  nor  more  than  five 
hundred  dollars  for  each  offense,  to  be  recovered  in  the  name  of 
the  state  for  the  use  of  the  permanent  school  fund.  [38  G.  A., 
ch.  318,  §  1;  26  G.  A.,  ch.  22,  §  1.] 

See  also  section  1782  and  last  citation  thereunder. 

The  statutory  prohibition  of  combinations  between  fire  insurance  com- 
panies in  relation  to  the  rates  of  commissions  or  the  manner  of  trans- 
acting business  is  not  in  violation  to  the  state  constitution  prohibiting  the 
granting  of  special  privileges  and  immunities,  and  requiring  general  laws 
to  be  uniform  in  operation.  But  so  far  as  such  provisions  make  it  unlaw- 
ful for  two  or  more  companies  to  enter  into  any  agreement  as  to  the 
amount  of  commissions  to  be  allowed  agents,  they  are  invalid  as  depriving 
the  companies  of  the  liberty  of  contract,  secured  by  the  federal  constitu- 
tion. Greemoich  Ins.  Co.  v.  Carroll,  125  Fed.  121.  (As  to  the  second 
point  this  case  is  reversed.     Carroll  v.  Greenwich  Ins.  Co.,  199  U.  S.,  401.) 

Sec.  1755  (C.  C.  5670).  Revocation  of  authorit3^  The  com- 
missioner of  insurance  is  authorized  to  summon  before  him,  for 
examination  under  oath,  any  officer,  ag-ent  or  employe  of  any  such 
company  suspected  of  violating  any  of  the  provisions  of  the  pre- 
ceding section,  and,  on  complaint  to  him  in  writing  by  two  or 
more  residents  of  this  state  charging  such  company  under  oath 
upon  their  knowledge  or  belief  with  violating  the  provisions  of 
the  preceding  section  he  shall  summon  any  officer,  agent  or  em- 
ploye of  said  company  before  him  for  examination  under  oath; 
if  upon  such  examination,  and  that  of  any  other  witness  pro- 
duced and  examined,  he  shall  determine  that  such  company  is 
guilty  of  a  violation  of  any  of  the  provisions  of  the  preceding 
section,  or  if  any  such  officer,  agent  or  emploj^e  after  being  duly 
summoned  shall  fail  to  appear  or  submit  to  examination,  the  com- 
missioner shall  forthwith  issue  an  order  revoking  the  authority 
of  such  company  to  transact  business  within  this  state,  and  it 
shall  not  thereafter  be  permitted  to  do  the  business  of  fire  insur- 
ance in  this  state  at  any  time  within  one  year  therefrom.  [26 
G.  A.,  ch.  22,  §  2.] 

Certificate    revoked.      See    1715-24-25-47.      App.    1821d.      Frat.    1832-39-d. 

Sec.  1756  (C.  C.  5671).  Appeal.  Either  party  may  appeal 
from  the  decision  of  the  commissioner  of  insurance  made  pur- 
suant to  the  preceding  section,  to  the  district  court  of  the  coun- 
ty where  the  same  was  made,  within  twenty  days  from  the  time 
of  the  rendition  of  such  decision,  by  serving  a  written  notice  of 
such  appeal  on  the  opposite  party  and  on  the  commissioner,  and 
filing  with  the  clerk  of  said  court  a  good  and  sufficient  bond  for 
the  payment  of  all  costs  on  the  appeal  in  case  the  decision  sliall 
be  affirmed.  On  such  appeal  said  court  shall  try  the  case  de  novo, 
as  equitable  causes  are  tried,  and  on  such  evidence  as  eitJier 
party  may  jjroduce,  and  may  reverse,  modify  or  affirm  the  de- 
cision of  the  commissioner.     [Same,  §  3.] 

Sec.  1757  (C.  C.  5672).    Evidence.    The  statements  and  declara- 


rii.4,T.  IX  INSURANCE  OTHER  THAN  LIFE  53 

tioiis  made  or  testimony  given  by  any  such  officer,  agent  or  em- 
ploye in  the  investigation  before  the  commissioner  of  insurance, 
or  upon  tlie  licaring  and  trial  before  the  district  court,  as  provided 
ill  the  two  pi-eceding*  sections,  sliall  uol  be  used  against  the  person 
making  tiie  same  in  any  criminal  prosecution  against  him.  [Same, 
§4.] 

Sec.  1758  (C.  C.  5673).    Insurance  in  unauthorized  companies. 

No  action  sliaii  be  maintained  in  any  court  m  the  state  upon  any 
policy  or  contract  of  fire  insurance  issued  upon  any  property 
s^-^uated  in  the  state  by  any  company,  association,  partnership, 
individual  or  individuals  that  have  not  been  authorized  by  the 
commissioner  of  insurance  to  transact  such  insurance  business, 
unless  it  shall  be  shown  that  the  insurer  or  insured,  wdthin  six 
months  after  the  issuing  of  such  policy  or  contract  of  insurance, 
lias  paid  in  to  the  state  treasury  two  and  one-half  per  cent  of 
the  gross  premium  i^aid  or  agreed  to  be  paid  for  such  policy 
or  contract  of  insurance   [26  (1.  A.,  ch.  28.  | 

Sec.  1758-a  (C.  C.  5674).  Additional  riders  and  clauses  per- 
mitted. It  shall  be  unlawful  for  any  insurance  company  tu  issue 
any  policy  of  fire  insurance  upon  any  i^roperty  in  this  state  ex- 
cept upon  automol)iles  and  marine  risks  other  or  different  t'l-oin 
the  staiidai-d  form  of  tire  insurance  poTu^y  herein  s«'t  t'oi-lh,  ex- 
cept, 

I.  It  may  print  in  its  policy  its  name,  location,  date  of  in- 
corporation, amount  of  its  paid-up  capital  stock,  (if  a  stock  com- 
pany), names  of  its  officers  and  agents,  tlie  number  and  date  of 
the  policy,  the  amount  (under  dollar  mark)  for  which  it  is  is- 
sued, and  if  issued  through  an  agent,  the  words:  "This  policy 
shall  not  be  valid  until  countersigned  by  the  duly  authorized 
agent  of  tliis  company  at ' ' 

II.  It  may  use  in  or  upon  its  policy  forms  or  slips  of  the  (h*- 
scription,  location  and  specifications  of  the  property  insured,  to- 
gether with  permits  upon  such  conditions  not  in  conflict  with  the 
provisions  of  law,  as  may  be  agreed  upon,  for  the  use  or  storage 
of  electricit.y,  gasoline,  explosives,  or  other  extra  liazardous  prod- 
ucts or  materials;  for  repairs  or  improvements;  for  the  operation 
or  ceasing  to  operate ;  and  for  the  vacancy  of  the  premises ;  and 
permits  for  hazards  other  than  those  specifically  mentioned 
above;  also  a  mortgagee's  or  loss  pa^^able  clause,  and  other  per- 
mits or  riders,  not  in  conflict  with  law. 

III.  It  may  also  by  written  or  printed  clause  upon  such  condi- 
tions not  in  conflict  with  the  provisions  of  law  as  may  be  agreed 
upon,  provide  that  a  policy  shall  cover  any  loss  or  damage  caused 
by  lightning,  tornadoes,  cyclones,  hail  or  windstorms  not  exceed- 
ing the  sum  insured  or  the  interest  of  the  insured  in  the  property; 
provided,  if  there  shall  be  other  valid  insurance  on  sucli  property 


INSURANCE  OTHER  THAN  LIFE  C\\.  4,  T.  IX 


whereby  the  same  is  insured  against  loss  by  lightning-,  tornadoes, 
cyclones,  hail  or  windstorms,  said  company  shall  be  liable  only 
pro  rata  witii  such  other  valid  and  {•olleetibh*  insurance  for  an^^ 
such  loss  b\'  lightning,  tornadoes,  cyclones,  hail  or  windstorms. 

IV.  Any  company  incorporated  in  this  state,  or  authorized  to 
do  business  herein,  shall  print  in  its  policy  or  attach  thereto  any 
provisions  which  such  company  are  required  b}^  law  to  insert  in 
its  policies  or  attach  thereto,  not  included  in  the  provisions  of 
this  polic3^,  but  such  provisions  shall  be  printed  apart  from  the 
other  conditions  and  agreements  of  this  policy  and  under  a  sep- 
arate title  as  follows:  ''Provisions  required  by  law  to  be  stated 
in  the  policy  of  insurance." 

V.  It  shall  print  upon  its  policy  issued  in  compliance  with  the 
preceding  provisions  of  this  act,  the  words:  "Iowa  Standard  Fire 
Insurance  Policv."      [33  G.  A.,  ch.   112,   ^   1;  32  G.  A.,   ch.  76, 

§  1.] 

See  1712-27-28-29-30-45,  concerning  policies  other  than  life. 

A  rider  to  a  blanket  policy  on  several  buildings  incorporating  therein 
an  average  clause  is  not  prohibited  by  this  section.  Dahms  v.  German 
F.  Ins.  Co.,  153-168. 

Sec.  1758-b  (C.  C.  5675).  Standard  fire  insurance  policy — 
form.  Tlie  policy  sliall  l)e  plainly  printed,  and  no  part  thereof 
shall  be  in  type  smaller  than  brevier;  the  conditions  thereof  shall 
be  printed  in  uniform  numbered  lines,  as  adopted  and  approved 
by  the  commissioner  of  insurance,  and  such  policy  shall  be  in 
terms  and  conditions  as  follows : . 

I.     In  consideration  of  the  stipulations  herein  named  and  of 

dollars,  does  insure for  the  term  of 

from  the day  of 19 at  noon  (standard 

time),  to  the day  of  19. . .   at  noon 

(standard  time),  against  all  direct  loss  or  damage  by  fire,  except  as  here- 
inafter provided,  to  an  amount  not  exceeding  dollars, 

to  the  following   described   property,  while   located  and   contained   as  de- 
scribed herein,  and  not  elsewhere,  to-wit: 


It  is  hereby  agreed  that  the  insured  may  obtain  $ 

additional  insurance  in  companies  authorized  to  do  business  in  the  state 
of  Iowa. 

II.  This  company  shall  not  be  liable  beyond  the  actual  cash  value  of 
the  property  covered  by  this  policy  at  the  time  any  loss  or  damage  occurs, 
and  said  liability  shall  in  no  event  exceed  what  it  would  cost  the  insured 
to  repair  or  replace  the  property  lost  or  damaged  with  material  of  like 
kind  and  quality.  The  sum  for  which  this  company  is  liable  pursuant 
to  this  policy,  shall  be  payable  forty  days  after  due  notice  and  proofs  of 
loss  have  been  received  by  this  company  in  accordance  with  law. 

III.  This  policy  shall  be  void  if  the  insured  has  concealed  or  mis- 
represented any  material  fact  of  circumstance  concerning  this  insurance 
of  the  subject  thereof. 


Cli.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  55 

IV.  Unless  otherwise  provided  by  agreement  of  this  company  this 
policy  shall  be  void: 

(a)  If  the  insured  now  has  or  shall  hereafter  procure  any  other  coiv 
tract  of  insurance  valid  or  invalid  on  the  property  covered  in  whole  or 
in  part  by  this  policy;   or 

(b)  If  the  subject  of  insurance  be  a  manufacturing  establishment, 
and  it  cease  to  be  operated  for  more  than  ten  consecutive  days;   or 

(c)  If  the  building  herein  described,  whether  intended  for  occupancy 
by  the  owner  or  tenant  be  or  become  vacant  or  unoccupied  and  so  remain 
for  ten  consecutive  days;  or 

(d)  If  the  interest  of  the  insured  be  other  than  unconditional  and 
sole  ownership;  or 

(e)  If  the  subject  of  insurance  be  a  building  on  ground  not  owned 
by  the  insured;  or 

(f)  If  any  change  other  than  by  death  of  the  insured,  whether  by 
legal  proceedings,  judgment,  voluntary  act  of  the  insured  or  otherwise, 
take  place  in  the  interest,  title,  possession  or  use  of  the  subject  of  insur- 
ance, if  such  change  in  the  possession  or  use  makes  the  risk  more  haz- 
ardous; or 

(g)  If  the  subject  of  insurance  or  a  part  thereof  (as  to  the  part  so 
encumbered)  be  or  become  encumbered  by  lien,  mortgage  or  otherwise 
created  by  voluntary  act  of  the  insured  or  within  his  control;  or 

(h)  If  the  property  insured  or  any  part  thereof  (as  to  the  part  so 
removed)  be  removed  to  any  other  building  or  location  than  that  specified 
in  the  policy;  or 

(i)     If  this  policy  be  assigned  l)efore  loss. 

V.  Unless  otherwise  provided  by  agreement  of  this  company,  this  policy 
shall  be  void: 

(a)  If  the  subject  of  insurance  be  a  manufacturing  establishment,  and 
it  be  operated  in  whole  or  in  part  at  night  later  than  10  o'clock;  or 

(b)  If  the  hazard  be  increased  by  any  means  within  the  knowledge 
of  the  insured;  or 

(c)  If  mechanics  be  employed  in  building,  altering  or  repairing  the 
within  described  premises  for  more  than  fifteen  days  at  any  one  time;  or 

(d)  If  illuminating  gas  or  vapor  be  generated  in  any  building  cov- 
ered hereby,  or  on  any  premises  adjacent  thereto  for  use  upon  the  insured 
premises;  or 

(e)  If  there  be  kept,  used,  or  allowed  on  the  within  described  premises 
benzine,  benzole,  dynamite,  ether,  fireworks,  gasoline,  Greek  fire,  gun- 
powder, exceeding  twenty-five  pounds  in  quantity,  naphtha,  nitroglycerine, 
or  other  explosives,  phosphorus,  calcium  carbide,  petroleum  or  any  of  its 
products  of  greater  inflammability  than  kerosene  of  lawful  standard, 
which  last  named  article  may  be  used  for  lights  and  kept  for  sale  accord- 
ing to  law,  in  quantities  not  exceeding  five  barrels;  or 

(f)  If  the  insured  permits  the  property  which  is  the  subject  of  insur- 
ance, or  any  part  thereof,  to  be  used  for  any  unlawful  purpose. 

Provided  that  nothing  contained  in  paragraph  five  herein  shall  operate 
to  avoid  this  policy  in  any  case,  if  the  insured  shall  establish  that  the 
failure  to  observe  and  comply  with  such  provisions  and  conditions  did  not 
contribute  to  the  loss. 

VI.  This  company  shall  not  be  liable  for  loss  caused  directly  or  in- 
directly by  invasion,  insurrection,  riot,  civil  war,  or  military  usurped 
power,  or  by  theft,  or  by  neglect  of  the  insured  to  use  all  reasonable  means 
to  save  and  preserve  the  property  during  and  after  a  fire,  or  when  the 
property   is  endangered  by   fire  in   neighboring  premises;    or    (unless   fire 


56  INSURANCE  OTHER  THAN  LIFE  Ch.  4,  T.  IX 


ensues,  and  in  that  event,  for  damage  by  fire  only,)  by  explosion  of  any 
kind  or  by  lightning;  but  liability  for  direct  damage  by  lightning  may 
be  assumed  by  specific  agreement, 

VII.  This  company  shall  not  be  liable  for  loss  or  damage  to  any  prop- 
erty covered  by  this  policy  if  the  insured  shall  fail  to  pay  any  written 
obligation  given  to  the  company  for  the  premium  or  any  assessment  or 
installment  of  premium  when  due;  provided  the  company  shall  have  given 
the  insured  notice  as  required  by  law.  Upon  payment  and  acceptance  by 
the  company  of  the  delinquent  premium  assessment  or  installment  of 
premium  before  loss  occurs,  or  after  loss,  if  the  company  shall  have  had 
notice  thereof  and  accepts  such  payment,  this  policy  shall  be  revived  and 
in  full  force  according  to  its  terms. 

VIII.  If  a  building  or  any  part  thereof  fall,  except  as  the  result  of 
fire,  all  insurance  by  this  policy  on  such  building,  or  its  contents,  shall 
immediately  cease. 

IX.  This  company  shall  not  be  liable  for  loss  to  accounts,  bills,  cur- 
rency, deeds,  evidence  of  debt,  money,  notes  or  security;  nor,  unless 
liability  is  specifically  assumed  thereon,  for  loss  to  awnings,  bullion, 
casts,  curiosities,  drawings,  dies,  implements,  jewels,  manuscripts,  medals, 
models,  patterns,  pictures,  scientific  apparatus,  signs,  store  or  office  furni- 
ture or  fixtures,  sculpture,  plate  glass,  frescoes  or  decorations;  or  prop- 
erty held  in  storage  or  for  repairs;  nor,  beyond  the  actual  value  destroyed 
by  fire  for  loss  occasioned  by  ordinance  or  law  regulating  construction  or 
repairs  of  buildings,  or  by  interruption  of  business,  manufacturing  pro- 
cesses or  otherwise. 

X.  Any  application,  survey,  plan,  or  description  of  property  signed 
by  the  insured  and  referred  to  in  this  policy  shall,  when  a  copy  is 
attached  hereto,  be  a  part  of  this  contract,  and  shall  be  held  to  be  a 
i-epresentation  and  not  a  warranty. 

XL  This  policy  shall  be  canceled  at  any  time  at  the  request  of  the 
insured;  or  by  the  company  by  giving  five  days'  notice  of  such  cancella- 
tion either  by  registered  letter  directed  to  the  insured  at  his  last  known 
address,  or  by  personal  written  notice.  If  this  policy  shall  be  Cfincelled 
as  hereinbefore  provided,  or  become  void  or  cease,  the  premium  having 
been  actually  paid,  the  unearned  portion  shall  be  returned  on  surrender 
of  this  policy  or  last  renewal,  this  company  retaining  the  customary  short 
rates;  except  that  when  this  policy  is  cancelled  by  this  company  by  giving 
notice  it  shall  retain  only  the  pro  rata  premium. 

XII.  If,  with  the  consent  of  this  company,  an  interest  under  this 
policy  shall  exist  in  favor  of  a  mortgagee  or  of  any  person  or  corporation 
having  an  interest  in  the  subpect  of  insurance  other  than  the  interest  ot 
the  insured  as  described  herein,  the  previsions  and  conditions  hereinbe- 
fore contained  shall  apply  in  the  manner  expressed  in  such  provisions 
and  conditions  of  insurance  relating  to  such  interest,  as  shall  be  agreed 
upon  by  this  company. 

XIII.  If  property  covered  by  this  insurance  is  so  endangered  by  fire 
as  to  require  removal  to  a  place  of  safety,  and  is  so  removed,  that  part 
of  this  policy  in  excess  of  its  proportion  of  any  loss  and  value  of  property 
remaining  in  the  original  location,  shall,  for  the  ensuing  five  days  only, 
cover  the  property  so  removed  in  the  new  location;  if  removed  to  more 
than  one  location,  such  excess  of  this  policy  shall  cover  therein  for  such 
five  days  in  the  proportion  that  the  value  in  any  one  new  location  bears 
to  the  value  in  all  such  new  location;  but  this  company  shall  not  in  any 
case  of  removal,  whether  to  one  or  more  locations,  be  liable  beyond  the 
proportion  that  the  amount  hereby  insured  shall  bear  to  the  total  valid 
and  collectible  insurance  on  the  whole  property  at  the  time  of  fire, 
whether  the  same  cover  in   new  location  or  not. 

XIV.  If  loss  occur  the  insured   shall  as  soon   as   i)racticablc  after  lit 


Ch.  4,  T.  IX  .     INSURANCE  OTHER  THAN  LIFE  57 


ascertains  the  fact  of  such  loss,  give  notice  in  writing  thereof  to  the 
company,  protect  the  property  from  further  damage,  forthwith  separate 
the  damaged  and  undamaged  personal  property,  and  put  it  in  the  best 
possible  order,  and  shall,  within  sixty  days  from  date  of  loss,  furnish 
this  company  with  notice  thereof  in  writing  accompanied  by  affidavit 
stating  the  facts  as  to  how  tho  loss  occurred  and  the  extent  thereof,  so 
far  as  such  facts  are  within  his  knowledge. 

XV.  The  insured  as  often  as  reasonably  required,  shall  exhibit  to  any 
person  designated  by  this  company,  all  that  remains  of  any  property 
herein  described  as  to  which  a  claim  for  loss  or  damage  is  made,  and 
submit  to  examination  under  oath  by  any  person  named  by  this  company, 
and  subscribe  the  same,  and,  as  often  as  reasonably  required,  shall  pi-o- 
duce  for  examination  all  books  of  account,  bills,  invoices,  and  other 
vouchers,  or  certified  copies  thereof,  if  originals  be  lost,  at  such  reasonable 
place  as  may  be  designated  by  this  company  or  its  representatives,  anci 
shall  permit  extracts  and  copies  thereof  to  be  made;  provided,  however, 
that  this  company  shall  not  be  held  to  have  waived  any  of  the  provisions 
or  conditions  of  this  policy  or  any  forfeiture  thereof  by  any  examination 
or   investigation  herein   provided    for. 

XVI.  This  company  shall  not  be  liable  under  this  policy  for  a  greater 
proportion  of  any  loss  on  the  described  property,  or  for  loss  by  and  ex- 
pense of  removal  from  premises  endangered  by  fire,  than  the  amount 
hereby  insured  shall  bear  to  the  whole  amount  of  valid  and  collectiblfc 
insurance    covering   such    property. 

XVII.  No  suit  or  action  on  this  policy,  for  the  recovery  of  any  claim 
thereon,  shall  be  sustainable  in  any  court  of  law  or  equity,  unless  com- 
menced within  twelve  months  next  after  the  right  of  action  for  the  loss 
accrues. 

XVIII.  Wherever  in  this  policy  the  word  "insured"  occurs,  it  shall  be 
held  to  include  the  legal  representative  of  the  insured,  and  wherever  the 
word  "loss"  occurs,  it  shall  be  deemed  the  equivalent  of  "loss  or  damage." 

XIX.  This  policy  is  issued  and  accepted  subject  to  the  foregoing  stipu- 
lations and  conditions,  together  with  such  other  provisions,  agreements 
or  conditions  now  or  hereafter  specifically  authorized  by  law  as  may  be 
endorsed  hereon  or  added  hereto. 

In  witness  whereof,  this  company  has  executed  and  attested  these 
presents. 

: Secretary. 

President. 

Countersigned  at this day 

of 19.. 

Agent. 

[34  G.  A.,  ch.  18,  §§  9,  10;  32  G.  A.,  ch.  76,  §  2.] 

See  also  1728-41-43-44-45. 

The  notice  requisite  to  the  cancellation  of  a  policy  by  the  insurance 
company  may  be  waived  by  the  insured.  Warren  v.  Franklin  Fire  Ins.  Co., 
161-440. 

Sec.  1758-c  (C.  C.  5676).  Violations— penalty.  Any  insurance 
company,  its  officers  or  agents,  or  eitlier  of  them,  violating:  any 
of  the  provisions  of  this  act,  by  issuing,  deliverin<>-  or  offering-  t(» 
issue  or  deliver  any  policy  ol  lire  insurance  on  property  in  this 
state  other  or  different  from  the  standard  form,  herein  provided 
for,  shall  be  gmliy  of  a  misdemeanor,  and  upon  complaint  mad.- 
by  the  commissioner  of  insunincr.  or  by  any  citi/ou  of  this  stat«', 
siiall,  upon  conviction  lliereor,  be  i)uiiislu'(l  by  a  line  <»f  ii(»l   h-ss 


58  INSURANCE  OTHER  THAN  LIFE  Cli.  4,  T.  IX 

than  fifty  dollars  nor  more  than  one  hundred  dollars  for  the 
first  offense,  and  not  less  than  one  hundred  nor  more  than  two 
hundred  dollars  for  each  subsequent  offense,  and  such  company 
shall,  until  the  payment  of  such  fine,  be  disqualified  from  doing- 
any  insurance  business  in  this  state ;  but  any  policy  so  issued  or 
delivered  shall,  nevertheless,  be  binding  upon  the  company  issu- 
ing or  delivering  the  same.     [32  G.  A.,  ch.  76,  §  3.] 

Sec.  1758-d  (0.  0.  5677).  Existing  statutes — waiver  in  interest 
of  insured.  Nothing  contained  in  this  act  nor  any  provisions  or 
conditions  in  the  standard  form  of  policy  provided  for  herein, 
shall  be  deemed  to  repeal  or  in  any  way  modify  existing  statutes 
nor  to  prevent  any  insurance  company  issuing  such  polic.y,  from 
waiving  am^  of  the  provisions  or  conditions  contained  therein, 
if  the  waiver  of  such  provisions  or  conditions  shall  be  in  the  in- 
terest of  the  insured.     [32  G.  A.,  ch.  76,  §  4.] 

Sec.  1758-e  (C.  0.  5678).  Policy  must  appear  in  name  of  issuing 
company  only.  That  every  fire  insurance  company  and  associa- 
tion authorized  to  transact  business  in  this  state  shall  conduct 
its  business  in  the  name  under  which  it  is  incorporated,  and  the 
policies  issued  by  it  shall  be  headed  or  entitled  only  by  such 
name.  There  shall  not  appear  on  the  face  of  the  policy  or  on  its 
filing  back,  anything  that  Avould  indicate  that  it  is  the  obliga- 
tion of  any  other  than  the  company  responsible  for  the  payment 
of  losses  under  the  policy,  though  it  will  be  permissible  to 
stamp  or  print  on  the  bottom  of  the  filing  back,  the  name  or 
names  of  the  department  or  general  agencv  issuing  the  same. 
[36  G.  A.,  II.  F.  516,  §  1.] 

Sec.  1758-f   (C.  C.  5679).     Misleading  statements  prohibited. 

No  insurance  coiiipany  or  department  or  general  agency  of  an 
insurance  company,  doing  business,  in  this  state,  or  its  officers 
or  agents,  shall  issue  any  false  or  misleading  advertisement 
through  newspapers  or  other  periodicals,  or  any  false  or  mis- 
leading representations  by  signs,  cards,  letterheads,  etc.,  tending 
to  conceal  or  misrepresent  the  true  identity  of  the  insurer  or 
insurance  company,  Avhich  is  carrying  the  lial)ility  under  any 
policy  issued  in  this  state. 

Nor  shall  any  insurance  company  or  department  or  general 
agency  of  an  insurance  company,  doing  business  in  this  state, 
issue  any  advertisement  or  representation  of  any  character, 
giving  the  appearance  of  a  separate  or  independent  insuring 
organization  on  the  part  of  any  department  or  general  agency, 
and  the  type  or  lettering  used  in  any  advertisement  or  repre- 
sentation shall  set  forth  the  name  of  the  company  or  organization 
assuming  the  risk  more  couspicuousl}^  than  tliat  of  any  depHrl- 
ment  or  general  agency.     [36  G.  A.,  H.  F.  516,  §  2.  | 

Sec.  1758-g  (C.  C.  5680).     Penalty.     Any  vi(»]alion  of  tliis  act 


Ch.  4,  T.  IX  INSURANCE  OTHER  THAN  LIFE  59 

shall  be  punished  bv  a  fine  of  not  exceeding  live  hundred  dollars. 
[36  G.  A.,  H.  F.  516,  §  3.] 

See.  1758-h  (C.  C.  5681).  Agent  may  advertise  individual 
business  without  mentioning  company  represented.  Nothing 
herein  contained  shall  l)e  construed  to  prevent  any  representative 
of  an  insurance  company  from  advertising  his  own  individual 
business  without  specific  mention  of  the  name  of  the  company 
or  companies  which  he  may  represent.     |  36  (I.  A.,  11.  F.  516,  §  4.  | 

CHAPTER  286— 38th  G.  A. 

PROVIDING    FOR    AND    AUTHORIZING    PHYSICIANS,    DRUGGISTS, 
DENTISTS,  AND  GRADUATE   NURSES— MUTUALS 

(House    File   No.    10  7) 

AN  ACT  providing-  for  the  organizing,  admitting  from  other  states, 
licensing  and  regulating  of  mutual  insurance  corporations,  organized 
among  physicians,  druggists,  dentists  and  graduate  nurses  for  their 
protection  against  loss  in  actions  for  alleged  error,  mistake  or  neg- 
ligence; requiring  such  organizations  to  be  incorporated;  providing  for 
fees,  taxes,  licenses,  reports,  cancellations,  supervision  and  other 
regulations  thereof  and  repealing  all  acts  and  parts  of  acts  in  conflict 
therewith. 

Be  It  Enacted  hy  the  General  Assembly  of  the  State  of  Iowa: 

Section  1  (C.  C.  5697  to  5699  inclusive).  Any  number  of 
p]jysicians,  dniggists,  dentists  and  graduate  luirses,  licensed  to 
l)ractice  their  profession  in  the  state  of  Iowa,  may,  by  complying 
with  the  provisions  of  this  chapter  and  without  regard  to  other 
statutory  provisions,  enter  into  contracts  with  each  other  for  the 
])urpose  of  protecting  themselves  by  insurance  against  loss  by 
leason  of  actions  at  laAV  on  account  of  their  alleged  error,  mis- 
take, negligence  or  carelessness  in  the  treatment  and  care  of 
patients,  including  performance  of  surgical  operations,  or  in  the 
prescribing  and  dispensing  of  drugs  and  medicines,  or  for  loss 
I)}'  reason  of  damages  in  other  respects,  and  to  reimburse  any 
member  in  case  of  such  loss.  All  corporations,  organized  for 
the  purpose  of  transacting  such  insurance  business  under  the 
provisions  of  this  act,  shall  incorporate  under  the  provisions  of 
chapter  1,  title  IX  of  the  code,  as  amended,  and  be  known  as 
mutual  corpoi'ations ;  and  are  hereby  empo\yered  to  collect  such 
assessments,  or  premium  pa^'ments,  provided  for  in  their  articles 
of  incorporation  or  by-laws,  as  are  required  to  pay  losses  and 
expenses  incurred  in  the  conduct  of  their  business.  Such  mutual 
insurance  corporations  may  issue  certificates  of  membership,  or 
policies;  and  may  provide  that  all  assessments,  av  premium  pay- 
ments, payable  thereunder,  be  made  in  cash,  or  on  tlie  installment, 
or  assessment  plan. 

Any  policy  issued  by  any  sn<'h  comj^any  sliall  <'(.ntain  a  provi- 


60  INSURANCE  OTHER  THAN  LIFE  Ch.  4.  T.  IX 

sion  SO  that  said  policy  shall  inure  to  the  benefit  of  any  person 
obtaining  a  judgment  against  the  insured  to  the  extent  of  the 
insurance  carried  and  for  the  purpose  for  which  tlie  insurance 
was  issued. 

Sec.  2  (C.  C.  5700-5701).  The  articles  of  such  mutual  insurance 
corporations,  shall  be  submitted  to,  and  approved  by,  the  attornej^ 
general  and  the  commissioner  of  insurance  before  being  filed 
with  the  secretary  of  state,  and  no  such  mutual  insurance  corpo- 
ration shall  issue  membership  certificates,  or  policies,  until  its 
form  of  certificate,  or  policy,  shall  have  been  submitted  to,  and 
approved  by,  the  commissioner  of  insurance  and  until  it  has 
secured  from  such  commissioner  of  insurance  a  certificate  author- 
izing it  to  transact  such  an  insurance  business.  No  such  certificate^ 
shall  be  issued  by  the  commissioner  of  insurance  until  two 
liundred  fifty  (250)  applications  have  been  received,- representing, 
in  the  aggregate,  one  million  ($1,000,000)  dollars  of  insurance, 
nor  until  the  commissioner  of  insurance  lias  satisfied  himself  that 
such  mutual  insurance  corporation  has  bona  fide  applications 
representing  the  number  of  applicants  and  the  amount  of  insur- 
ance herein  required,  and  that  there  is  in  the  possession  of  such 
mutual  insurance  corporation  cash  assets  amounting  to  not  less 
than  ten  thousand  ($10,000)  dollars. 

Sec.  3  (C.  C.  5702).  Such  mutual  insurance  corporations  doing 
business  under  the  provisions  of  this  chapter  shall,  annually, 
in  the  month  of  January,  report  to  the  commissioner  of  insur- 
ance, upon  blanks  furnished  by  him,  the  same  facts,  so  far  as 
applicable,  as  are  required  to  be  furnished  by  mutual  insurance 
associations  under  the  statute  of  Iowa,  which  report  shall  be 
tabulated  by  the  commissioner  of  insurance  and  published  by  him 
in  the  annual  report  on  insurance. 

Sec.  4  (C.  C.  5703).  Such  mutual  insurance  corporations  shall, 
annually,  set  aside  and  maintain  as  a  re-insurance  reserve,  an 
amount  equal  to  ten  i3er  cent  of  the  receipts  from  assessments, 
or  premium  payments,  during  the  year  until  the  total  amount 
thus  accumulated  shall  equal  forty  per  cent,  but  not  to  exceed 
fifty  per  cent  of  the  amount  of  the  annual  assessment,  or  premium 
payment,  at  the  rate  charged  for  such  insurance  on  all  policies 
in  force.  The  reserve  thus  accumulated  may  be  used  for  the 
payment  of  losses  and  expenses,  and  w^hen  so  used  shall  be 
restored  and  maintained  in  like  manner  as  originall}^  accu- 
mulated. 

Sec.  5  (C.  C.  5704).  Any  certificate  of  membership,  or  policy, 
issued  by  such  a  mutual  insurance  corporation  may  be  cancelled 
by  the  corporation  by  giving  five  days'  written  notice  thereof  to 
the  insured;  or  such  cancellation  may  be  upon  demand  of  the 
insured;  and  such   cancellation,   when  so   made,   either   bj^   the 


Ch.  5,  T.  IX    STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS  61 

coi'poratiou  or  by  the  insured,  shall  be  upon  a  pro-rata  basis, 
and  the  cancellation  of  such  certificate  or  policy  shall  release 
the  member  from  all  other  future  (jblijj;ations  Lo  such  corporation. 
8ec.  6  (C.  C.  5705).  Such  a  imiliial  insurance  corporation 
shall  pay  the  same  fees  for  admission  into  I  he  state,  for  annual 
reports  and  for  annual  certilieat(\s  of  authority  as  are  required 
to  be  paid  b}^  domestic  mutual  companies  organized  and  doing 
business  under  chapter  4,  title  JX  of  the  code  of  Iowa,  as 
amended;  such  certificate  shall  expire  March  first  of  the  year 
following  the  date  of  its  issue.  The  commissioner  of  insurance 
shall  liave  and  exercise  the  same  control  over  such  corporations 
as  he  now  has  over  nuitual  assessment  insurance  associations 
organized  and  doing  business  under  the  i)ro visions  of  chapter  5, 
title  IX  of  the  code  of  Iowa.  TIk^  provisions  as  to  nuxximum 
liability  of  members  to  assessments  when  assets  are  insufficient 
and  lo  assessments  when  the  corpoi-ation  is  insolvent,  found  in 
sections  17r)l)-j,  17r)f)-k  and  17r)l)-l,  su|)[)leinent  to  the  eode,  li)!:}, 
shall  apply  to  all  mutual  insui'anee  c()ri)()rations  organized  uiub'r 
the  provisions  of  this  act.  ^ 

See.  7  (C.  C.  5706).  Any  mutual  insurance  association  organ- 
ized under  the  laws  of  any  other  state,  for  th(»  purpose  of 
transacting  the  kind  of  business  described  in  section  1  of  this 
act,  and  which  has  been  in  business  not  less  than  one  year,  and 
has  on  hand  cash  assets  in  an  amount  of  not  less  than  ten  thou- 
sand ($10,000)  dollars,  and  has  not  less  than  three  hundred  (300) 
members,  shall  upon  application,  be  admitted  to  do  business  in 
this  state;  and  shall  thereafter  make  all  reports  and  be  subject 
to  taxation,  examination  and  supervision  by  the  commissioner 
of  insurance  to  the  same  extent  and  in  the  same  manner  as  are 
domestic  corporations  organized  under  the  provisions  of  this  act. 

Sec.  8  (C.  0.  5707).  All  acts,  or  parts  of  acts,  in  conflict  here- 
with shall  be  so  construed  as  not  to  include  corporations  regu- 
lated by  this  act. 

In  effect  b}'  publication  April  30,  1919. 

CHAPTER  5,  TITLE  IX 

Ch.  120,  39  G.  A. 

STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS 

AN  ACT  to  provide  for  the  organization,  regulation,  taxation  and  operation 
of  mutual  insurance  associations,  also  to  repeal  chapter  five  (5),  title 
nine  (IX)  of  the  code,  and  amendments  thereto,  (C.  C.  sec.  5682,  chapter 
8),  and  to  enact  a  substitute  therefor. 

Be  It  Enacted  hij  the  General  Asseinhhj  of  the  State  of  Iowa: 

Section  1.     That  chapter  five   ('>),  title  nine  (IX)   of  the  code 

5 


62  STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS    Ch.  5,  T.  IX 

(G.  C  section  5682,  chapter  8),  be  repealed  and  the  following 
enacted  in  lien  thereof: 

"8ee.  1.  Any  nnmber  of  persons  may  by  incorporating  nnder 
chapter  1,  title  IX,  of  the  code,  enter  into  contracts  with  each 
other  for  the  following  kinds  of  insurance  from,  loss  or  dam- 
age by :  First,  fire  and  lightning ;  second,  tornado,  cyclone  and 
windstorm;  third,  theft  and  against  any  or  all  loss,  expense  and 
liability  resulting  from  the  ownership,  maintenance  or  use  of  any 
automobile  or  other  vehicle,  but  siiall  not  include,  by  county 
mutuals,  insurance  against  bodily  injury  to  the  person;  fourth, 
])late  glass,  against  breakage  of  glass  local  or  in  transit;  fifth, 
liailstorms.  For  the  purpose  of  this  protection  these  contracts 
of  insurance  shall  be  subject  only  to  such  provisions  as  are 
contained  in  this  chapter,  and  shall  consist  of:  First,  an  appli- 
cation on  blanks  furnished  by  the  association  and  signed  by  the 
insured  or  his  representative,  which  ma}^  contain  in  addition  to 
other  provisions;  the  value  of  the  property,  the  proper  descrip- 
tion thereof,  the  amount  of  other  insurance  and  the  incumbrance 
thereon,  and  agreement  to  be  governed  by  the  articles  of  incor- 
poration and  by-laws  in  force  at  the  time  the  policy  is  issued, 
a  representation  that  the  foregoing  statements  are  true  as  far 
as  the  same  are  known  to  the  insured  or  material  to  the  risk,  and 
that  the  insurance  shall  take  effect  when  approved  by  the  secre- 
tary. Second,  a  policy  issued  by  the  association  in  accordance 
with  its  rules,  and  approved  by  the  commissioner  of  insurance. 
Such  associations  may  insure  risks  of  their  members  or  may 
reinsure  risks  of  other  associations  or  companies;  or  may  organ- 
ize reinsurance  associations  for  the  reinsurance  of  risks.  The 
word  'persons'  and  'members'  as  used  in  this  chapter  shall  be 
construed  to  mean  trustees,  administrators,  and  all  other  indi- 
viduals, public  or  private  corporations  or  associations. 

"Sec.  2.  Any  association  incorporated  under  the  laws  of  this 
state  for  the  purpose  of  furnishing  insurance  as  provided  for  in 
this  chapter,  doing  business  only  within  the  county  in  which  is 
situated  the  town  or  city  named  in  its  articles  of  incorporation 
as  its  principal  place  of  business,  or  the  counties  contiguous 
thereto,  shall  for  the  purpose  of  this  chapter,  be  deemed  a  county 
mutual  assessment  association;  all  other  associations  operating 
hereunder  shall,  for  the  purpose  of  this  chapter  be  deemed  state 
mutual  assessment  associations,  and  such  associations  may  do 
business  throughout  the  state  and  in  other  states  where  they 
are  legalized  and  authorized  to  do  business.  The  w^ords  'mutual' 
and  'association'  shall  be  incorporated  in  and  become  a  part  of 
their  name. 

"Sec.  3.  No  state  mutual  assessment  association  shall  issue 
policies  until  at  least  one  hundred  and  twenty-five   (Ti."))  appli- 


Ch.  5,  T.  IX    STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS  63 

cations  have  been  received  in  any  class  as  shown  by  section  one 
(1)  hereof,  representing  the  following  amount  of  insurance: 
Classes  1,  2,  3  and  5,  two  hundred  and  fifty  thousand  dollars 
($250,000)  each,  class  4,  one  hundred  thousand  dollars  ($100,000) 
and  no  county  mutual  assessment  association  shall  issue  policies 
until  applications  for  insurance  to  the  amount  of  fifty  thousand 
dollars  ($50,000)  representing  at  least  fifty  (50)  applicants  have 
been  received,  and  no  application  for  insurance  during  the  period 
of  organization  shall  exceed  two  per  cent  of  the  amount  required 
for  organization,  nor  after  one  year  of  organization  one  per  cent 
of  the  total  insurance  in  force,  any  reinsurance  taking  effect 
simultaneously  with  the  policy  being  deducted  in  determining 
such  maximum  single  risk.  Neither  shall  any  association  issue 
policies  of  insurance  until  its  articles  of  incorporation,  by-laws 
and  form  of  policy  shall  have  been  submitted  to  the  commis- 
sioner of  insurance,  and  if  upon  examination  of  same  he  finds 
them  to  conform  to  the  provisions  of  this  chapter,  he  shall 
at  once  issue  to  the  association  a  certificate  authorizing  it  to 
transact  an  insurance  business. 

*'Sec.  4.  Such  associations  may  collect  a  j)()licy  and  contin- 
gent fee,  and  such  assessments,  provided  for  in  their  articles  of 
incorporation  and  by-laAvs,  as  are  required  to  pay  losses  and 
necessary  expenses,  and  for  the  creation  and  maintenance  of 
an  emergency  fund  for  the  payment  of  excess  l()ss(\s,  and  no  part 
of  such  emergency  fund  can  be  claimed  by  any  member  whose 
policy  exiDires  or  is  surrendered  for  cancellation.  Any  associa- 
tion may  collect  assessments  for  losses  and  expenses  for  one 
3^ear  in  advance;  or  for  more  than  one  year  in  advance  where 
such  advance  assessment  does  not  exceed  five  (5)  mills  on  each 
dollar  of  insurance  in  force ;  and  in  case  the  funds  of  any 
association  are  not  sufficient  to  pay  losses  that  have  been 
reported  or  adjusted  the  association  may  bori'ow  money  for 
payment  of  losses  until  such  time  as  it  is  practical  to  make 
an  assessment  or  until  the  regular  assessment  period.  Poinds 
raised  by  such  associations  which,  because  of  temporarily  low 
rate  of  losses  are  not  needed  to  ])ay  losses  and  expenses  in  any 
year,  may  be  passed  to  an  emergency  fund  to  bo  held  for  i)a\-- 
ment  of  excess  losses  in  a  subsetiuent  year  or  years;  such  fund 
mny  be  deposited  in  banks,  or  at  the  option  of  the  board  of 
directors  may  be  invested  in  the  classes  of  securities  permitted 
by  section  1699  of  the  code,  as  amended;  but  under  the  direc- 
tion of  the  board  of  directors  and  with  the  consent  of  the 
commissioner  of  insurance  a  part  of  such  fund  may  be  invested 
in  a  home  office  building.  When  the  emergency  fund  of  any 
association  reaches  an  amount  equal  to  100  per  cent  of  the 
average  cost  per  thousand  on  all  policies  in  force  for  the  full  terra 
foj-  wjiicli  assessment  is  collected  and  not  less  tluiii  one  hundred 


64  STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS    Ch.  5,  T.  IX 

thousand  dollars  ($100,000)  or  such  amount  of  capital  stock  as 
is  required  of  domestic  companies,  such  associations  may  issue 
policies  of  fixed  premiums.  Associations  using  a  basis  rate 
whose  risks  consist  princij^ally  of  store  buildings  and  their  con- 
tents, manufacturing  establishments,  public  garages,  lumber 
yards,  office  buildings,  hotels,  theaters,  moving  picture  houses, 
stocks  of  implements  or  automobiles,  shall  maintain  at  all  times 
net  assets  equal  to  40  per  cent  of  one  annual  assessment  at  the 
basis  rate  charged  for  such  insurance  on  all  policies  in  force,  and 
may  provide  in  its  bj^-laws  and  specify  in  its  policies  the  maxi- 
mum liability  of  its  members  to  the  association;  such  liability 
shall  not  be  less  than  a  sum  equal  to  the  basis  rate  charged  by 
the  association  for  insurance  nor  greater  than  a  sum  equal  three 
times  such  basis  rate. 

"Sec.  5.  Each  association  doing  business  under  the  provisions 
of  this  chapter  shall,  annually,  in  the  month  of  January  report 
to  the  commissioner  of  insurance,  upon  blanks  furnished  by  him, 
such  facts  as  are  required  of  domestic  insurance  companies 
organizing  under  chapter  4  of  title  IX  of  the  code,  as  are  appli- 
cable to  this  chapter.  These  reports  shall  be  tabulated  and 
published  by  the  commissioner  of  insurance  in  the  annual  report 
of  insurance,  one  copy  of  which  shall  be  sent  to  each  association. 
The  county  associations,  the  state  associations,  and  those  doing 
an  exclusive  tornado,  an  exclusive  hailstorm,  or  an  exclusive 
automobile  insurance  business,  shall  be  separately  classified  in 
said  report. 


i  i 


Sec.  6.  In  furnisbing  pi'oofs  of  loss  under  any  contract  of 
insurance  under  this  chapter  for  loss  or  damage  it  shall  be  nec- 
essary for  the  insured,  within  sixty  (60)  days  from  the  time  loss 
or  damage  occurs,  to  give  notice  in  writing  to  the  association 
issuing  such  contracts  of  insurance  accompanied  by  an  affidavit 
stating  the  facts  as  to  how  the  loss  occurred  so  far  as  the  same 
are  within  the  knowledge  of  the  insured,  the  property  destroyed 
or  damaged  and  the  extent  of  the  loss;  provided,  however,  that 
in  case  of  damage  or  loss  to  live  stock  by  fire  or  lightning  or 
loss  or  damage  to  automobiles  by  theft  or  fire,  notice  of  such 
loss  must  be  given  the  association  by  mailing  written  notice 
within  five  (5)  days  from  the  time  such  loss  or  damage  occurred, 
and  in  case  of  loss  to  growing  crops  by  hail,  notice  of  such 
loss  must  be  given  the  association  by  mailing  a  registered  letter 
within  ten  (10)  days  from  the  time  such  loss  or  damage  occurred. 
No  action  on  any  loss  shall  be  begun  until  the  date  when  such  loss 
becomes  due  in  accordance  with  the  articles  of  incorporation  or 
by-laws  of  such  association  and  in  no  event  sooiun-  than  forty 
(40)  days  after  such  proof  has  been  given  to  the  association  and 
no  action  can  be  started  after  one  year  from  the  date  such  cause 
of  action  accrues. 


Ch.  5,  T.  IX   STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS  65 

^'Sec.  7.  In  any  action  brought  in  any  court  in  this  state  on 
any  policy  of  insurance  for  the  loss  of  any  building  so  insured, 
the  amount  stated  in  the  policy  shall  be  received  as  prima  facie 
evidence  of  the  insurable  value  of  the  building  at  the  date  of  the 
polic}^ :  Provided,  the  association  issuing  such  policy  may  show 
the  actual  value  of  said  property  at  date  of  policy,  and  any  de- 
preciation in  the  value  thereof  before  the  loss  occurred;  but 
the  said  association  shall  be  liable  for  the  actual  value  of 
the  property  insured  at  the  date  of  the  loss,  unless  such  value 
exceeds  the  amount  of  insurance  stated  in  the  polic3^  And  in 
any  action  on  a  policy  to  recover  loss  or  damage  on  personal 
property,  the  association  shall  not  be  liable  in  excess  of  the 
amount  of  damage  or  loss  at  the  time  the  loss  or  damage  occurs ; 
provided  that  the  value  of  growing  crops  may  be  stated  in  the 
policy  or  contract. 

*'Sec.  8.  The  commissioner  of  insurance  may  address  inciuirics 
to  any  association  in  relation  to  its  doings  and  condition,  and  any 
association  so  addressed  shall  promptly  reply  thereto  in  writ- 
ing. If  the  commissioner  of  insurance  is  then  satisfied  that  the 
association  has  failed  to  comply  with  any  provisions  of  this  law, 
or  is  exceeding  its  powers,  or  is  not  carrying  out  its  contracts  in 
good  faith ;  or  is  transacting  business  fraudulently  or  soliciting 
insurance  in  territories  where  it  is  not  legally  admitted  to  do 
business,  or  is  in  such  condition  as  to  render  the  further  trans- 
action of  business  by  it  hazardous  to  the  public  or  its  policy- 
holders, the  business  under  his  supervision  and  witli  the  consent 
of  the  association  may  be  reinsured  in  some  mutual  association, 
or  he  may  present  the  facts  relating  thereto  to  the  attorney 
general,  and  if  the  circumstances  warrant,  he  may  commence  an 
action  in  quo  warranto  in  a  court  of  competent  jurisdiction,  and 
such  court  shall  thereupon  notify  the  officers  of  such  association 
of  a  hearing,  and  unless  it  shall  then  appear  that  some  special 
and  good  reason  exists  ^vhy  such  association  should  not  bo 
closed,  said  association  shall  be  enjoined  from  carrying  on  any 
further  business,  and  some  person  shall  be  appointed  receiver  of 
such  associations  and  shall  proceed  at  once  to  take  possession 
of  the  books,  papers,  moneys  and  other  assets  of  the  association 
and  shall  forthwith,  under  the  direction  of  the  court,  proceed 
to  close  the  affairs  of  the  association  and  to  distribute  its  funds 
to  those  entitled  thereto,  or  he  may  make  an  assessment  pro  rata 
on  the  membership  liable  to  an  assessment  to  pay  the  legitimate 
debts  of  the  association. 

"Sec.  9.  Any  policy  of  insurance  issued  by  any  association 
operating  under  the  provisions  of  this  chapter  may  be  cancelled 
by  the  association  giving  five  (5)  days'  written  notice  thereof 
to  the  insured,  or  if  the  insured  shall  demand  in  Avriting  or  in 
person  of  the  association   \\\v   eancellation  of  policy,   the  asso- 


66  STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS    Ch.  5,  T.  IX 

elation  shall  immediately  advise  him  by  letter  to  last  knoAvn 
address,  the  amount,  if  any,  due,  as  his  pro  rata  share  of  losses 
and  in  addition  actual  expenses  incurred  on  said  policy.  Upon 
surrender  of  his  policy  and  payment  of  all  sums  due,  his  mem- 
bership shall  cease,  provided,  that  during  the  months  of  June, 
July  and  August,  hail  insurance  policies  may  be  cancelled  only 
at  the  option  of  the  officers  of  the  association  carrying  the  risk. 
Upon  the  cancellation  of  any  policy  of  insurance  issued  under 
the  provisions  of  this  act  all  obligations  to  the  association  having 
been  paid,  the  unearned  portion  of  any  advance  assessment  paid, 
other  than  the  emergenc}^  fund,  shall  be  returned  to  the  insured 
upon  the  surrender  of  his  policy,  the  association  retaining  a  pro 
rata  share  for  losses  and  in  addition  actual  expenses  incurred  on 
said  policy.  When  the  policy  is  cancelled  by  the  association  by 
giving  notice  thereof  it  shall  retain  only  the  pro  rata  assessment. 

''Sec.  10.  Any  state  mutual  assessment  association  contem- 
plated by  this  chapter,  before  being  authorized  to  do  business 
in  this  state,  shall  require  its  secretary  and  treasurer  to  give 
bond,  personal  or  surety,  to  the  association  in  such  sums  as  the 
directors  shall  deem  sufficient,  no  less  however,  than  ten  thou- 
sand dollars  ($10,000)  for  each  office,  which  bond  after  being 
approved  by  the  president  of  the  association,  shall  be  deposited 
with  the  commissioner  of  insurance  as  security  for  the  faithful 
performance  of  the  duties  of  the  secretary  and  treasurer  in 
liandling  the  funds  of  the  association.  Should  the  commissioner 
of  insurance  find  the  surety  on  said  bonds,  or  the  amount  thereof, 
insufficient,  he  may  require  additional  security,  or  an  increase  in 
the  amount  of  the  bond.  If  such  additional  security  or  increase 
be  not  furnished  within  thirty  (30)  days  after  notice  thereof, 
the  commissioner  of  insurance  shall  refer  the  matter  to  the 
attorney  general  the  same  as  under  section  8,  of  this  chapter, 
and  shall  be  taken  care  of  by  him  in  accordance  therewith. 

"Sec.  11.  Unless  the  time  and  place  of  holding  the  annual 
meeting  of  the  members  of  any  association  transacting  business 
under  the  provisions  of  this  chapter  is  plainly  r.tated  in  their 
articles  of  incorporation  or  by-laws,  twenty  (20)  days'  notice 
of  the  time  and  place  of  holding  of  said  meetings  shall  be  given 
to  all  members  of  the  association.  Members  of  the  association  at 
such  annual  meetings  shall  have  power  to  make  or  amend  articles 
of  incorporation  or  by-laws  as  they  in  their  judgment  may  deem 
necessarj^  and  when  such  articles  of  incorporation  and  by-laws 
are  printed  on  the  policy  they  become  a  part  thereof  and  are 
binding  upon  the  association  and  the  insured  alike.  Officers 
shall  be  elected  in  the  manner  prescribed  in  the  articles  of  incor- 
poration or  by-laws.  Annual  meetings  may  adjourn  from  time 
to  time. 


Ch.  5,  T.  IX   STATE  AND  COUNTY  MUTUAL  ASSOCIATIONS  67 

"Sec.  12.  Every  state  iiiul-ual  assoeiatioii  doing  business  under 
tliis  chapter  shall  on  or  befort;  the;  lirst.  day  ol!  March,  each  year, 
pay  to  the  treasurer  of  state  a  sum  eciuivalent  to  one  per  centum 
of  the  gross  receipts  from  premiums,  assessments,  fees  and  prom- 
issory obligations  for  business  done  within  the  state,  including  all 
insurance  upon  property  situated  in  the  state  after  deducting 
the  amount  actually  paid  for  losses  on  property  located  within 
this  state  and  the  amount  returned  upon  cancelled  policies  and 
and  rejected  applications  covering  property  situated  within  the 
state  and  the  amount  paid  for  reinsurance  on  property  situated 
within  the  state.  The  commissioner  of  insurance  shall  at  least 
once  in  each  biennial  period  cause  the  books  of  each  state  mutual 
association  doing  business  under  this  chapter  to  be  examined  and 
shall  furnish  a  report  of  such  examination  to  the  association 
so  examined.  The  expense  of  such  examination  shall  be  paid  by 
the  association  as  provided  for  in  section  eighteen  hundred 
twenty-one-c  (1821-c),  supplement  to  the  code,  1913  (C.  C.  Sec. 
5470).  County  mutual  associations  shall  be  exempt  from  the 
examination  and  the  payment  of  tax  provided  foi'  in  this  section. 

''See.  13.  In  assessing  for  taxatit)n  tlie  moneys  and  credits  of 
such  mutual  insurance  corporations,  the  assessor  shall  ascertain 
the  debts  or  liabilities,  if  any,  of  the  corporation  to  its  policy- 
holders or  other  persons  which  liabilities  shall  be  deducted  as 
provided  in  section  1311  of  the  code.  In  ascertaining  such  corpo- 
rate indebtedness,  a  debt  shall  be  deemed  to  exist  on  account  of 
its  liabilities  on  the  policy  certificates  or  contracts  of  insurance 
issued  by  its  equal  to  the  amount  of  surplus  or  other  funds  accu- 
mulated by  such  corporation  for  the  purpose  of  fulfilling  its 
policy  contracts  of  insurance  and  which  can  be  used  for  no  other- 
purpose. 

"Sec.  14.  Such  associations  shall  i^ay  the  same  fees  for  annual 
reports  and  annual  certificates  of  authority  as  are  required  to  be 
paid  by  domestic  companies  organized  and  doing  business  under 
the  preceding  chapter,  which  certificates  shall  expire  March 
1st  of  the  year  following  the  date  of  its  issue. 

"Sec.  15.  No  person  or  corporation  shall  solicit  any  applica- 
tion for  insurance  for  any  association,  other  than  county  mutuals, 
in  this  state  without  having  procured  from  the  commissioner  of 
insurance,  a  license  authorizing  him  to  act  as  agent.  Violation 
of  this  provision  shall  be  punished  by  a  fine  not  exceeding  twenty- 
five  dollars  ($25.00)  per  day.  The  commissioner  of  insurance 
shall  upon  the  receipt  of  payment  of  fifty  cents  (r)Oc)  issue 
license  to  act  as  agent  to  any  person  for  wdiom  a  license  is 
requested  by  any  association  doing  l)usiness  unde»*  tlie  provisions 
of  this  chapter.     The  commissioner  of  insurance  may,  for  a  just 


6S  LIFE  INSURANCE  COMPANIES  Ch.  G.  T.  IX 

and   reasonable    cause,    cancel   the   license    of   such   agent   after 
due  notice  and  hearing. 

''Sec.  16.  That  section  seventeen  hundred  fifty-nine-a  (1759-a), 
supplement  to  the  code,  1913,  and  all  sections  to  and  including 
section  seventeen  hundred  fifty-nine-o  (1759-o),  supplement  to 
the  code,  1913  (C.  C.  Sees.  oii&2  to  5()9(i),  and  ail  amendments 
thereto,  be  and  the  same  are  herebv  repealed.''  [39  G.  A., 
ch.  120.]  "       .  i 

CHAPTER  G,  TITLE  IX,  CODE. 
LIFE  INSURANCE  COMPANIES 

Section  1768  (C.  C.  5477).  On  level  premium  plan.  Every 
life  insurance  company  upon  the  level  premium  or  the  natural 
premium  plan,  created  under  the  laws  of  this  or  any  other  state 
or  country,  shall,  before  issuing  policies  in  the  state,  comply 
with  the  provisions  of  this  chapter  applicable  to  such  companies. 

Before  any  such  company  shall  be  permitted  to  incorporate 
under  the  laws  of  this  state,  it  shall  present  its  articles  of  incor- 
poration to  the  commissioner  of  insurance  and  the  attorney 
general  and  have  the  same  by  them  approved.  Such  articles 
shall  show  the  name,  location  of  principal  place  of  business, 
object,  amount  of  capital,  if  a  stock  company,  and  shall  contain 
such  other  provisions  as  may  be  necessary  to  a  full  understand- 
ing of  the  nature  of  the  business  to  be  transacted  and  the  plan 
upon  which  the  same  is  to  be  conducted.  All  amendments  to 
such  articles  and  amendments  hereafter  made  to  the  articles  of 
incorporation  of  companies  already  organized  under  the  laws  of 
this  state  shall  be  approved  in  like  manner.  [32  G.  A.,  ch.  81; 
C.  '73,  §  1161.] 

Articles  Approved  1785.     Fraternals  1832,  other  than  Life  1685. 

It  is  not  unlawful  for  an  insurance  company  to  discriminate  between 
policy  holders  and  those  who  are  not  policy  holders  in  the  loaning  of 
money,  nor  for  it  to  agree  that  one  who  takes  insurance  shall  have  a 
loan  thereon.     Key  v.  National  Life  Ins.  Co.,  107-446. 

A  policy  of  life  insurance  issued  to  a  resident  of  Iowa,  but  provid- 
ing that  the  premiums  were  to  be  paid  at  the  insurer's  office  in  New 
York,  where  payment  of  the  insurance  was  also  to  be  made,  and  signed 
at  the  insurer's  home  office  in  New  York  City  is  a  New  York  contract, 
governed  by  the  laws  of  that  state,  though  to  take  effect  on  delivery  to 
the  assured,  in  the  absence  of  proof  of  the  place  of  actual  delivery. 
Sum7n.it  v.  U.  S.  Life  Ins.  Co.,  123-681. 

The  provisions  of  this  section  as  to  "any  contract  of  insurance  to  agree- 
ment other  than  as  plainly  expressed  in  the  policy  issued"  is  to  be 
limited  in  its  application  by  the  title  of  the  act  in  which  it  was  first 
enacted,  and  by  the  general  provisions  of  the  section,  and  is  therefore 
applicable  only  to  cases  of  discrimination.  Kelley  v.  Mutual  L.  Ins.  Co., 
109  Fed.,  56. 

The  provision  as  to  contracts  "plainly  expressed  in  the  policy  issued" 
includes  in  the  term  "policy"  the  provision  of  the  application  endorsed 


Ch.  6,  T.  IX  LIFE   INSURANCE   COMPANIES  69 

thereon,  in  accordance  with  Code  §   1819.     Mutual  L.  Ins.  Co.  v.  Kelly, 
114  Fed.,  268. 

The  amendment  of  this  section  made  by  27  G.  A.,  chap.  46,  held  not 
applicable  where  the  policy  had  been  issued  and  the  death  had  occurred 
prior  to  the  taking  effect  of  the  amendment.  Beverly  v.  Northern  L. 
Assn.,  112-730. 

Sec.  1769  (0.  C.  5478).  Stock  companies — capital.  Stock  com. 
panics  organized  under  the  laws  of  this  state  shall  have  not  lesn 
than  one  hundred  thousand  dollars  of  capital,  which  shall  be  paid 
up  and  invested  in  bonds  of  the  United  States  of  this  state,  or  in 
bonds  and  mortgages  upon  unincumbered  real  estate  in  the 
state,  worth,  exclusive  of  improvements,  at  least  double  the 
sum  loaned  thereon,  which  securities  shall  be  deposited  with  the 
commissioner  of  insurance,  and  upon  such  deposit,  and  evidence 
by  affidavit  or  otherwise  satisfactory  to  the  commissioner  that 
the  capital  is  all  paid  up,  and  that  the  company  is  the  actual  and 
unqualified  owner  of  the  securities  representing  the  paid  up 
capital,  he  shall  issue  to  such  company  the  certificate  herein- 
after provided  for,  but  no  part  of  the  aforesaid  shall  be  loaned 
to  anv  stockholder  or  officer  of  the  company.  [39  G.  A.,  ch.  261, 
§  2;  C.  '73,  §  1162.1 

Other  than  Life,  1691,  1783-e. 

Sec.  1770  (0.  0.  5479).  Mutual  companies — conditions.  Level 
premium  and  natural  premium  life  insurance  companies  organ- 
ized under  the  laws  of  this  state  upon  the  mutual  plan  shall, 
before  issuing  any  policies,  have  actual  applications  on  at  least 
two  hundred  and  fifty  lives  for  an  average  amount  of  one 
thousand  dollars  each,  a  list  of  which,  giving  the  name,  age, 
residence,  amount  of  insurance,  and  annual  premium  of  eacli 
applicant  shall  be  filed  with  the  commissioner  of  insurance,  and 
a  deposit  made  with  him  of  an  amount  equal  to  three-fifths  of 
the  whole  annual  premium  on  said  applications,  in  cash  or  the 
securities  required  by  the  foregoing  section ;  and  on  compliance 
with  the  provisions  of  this  section,  the  commissioner  shall  issue 
to  such  mutual  companv  the  certificate  hereinafter  prescribed. 
[C.  '73,  §  1163.1 

Other  than  Life,  applicable  1690-92-1721-33. 

Sec.  1772  (C.  C.  5481).  Foreign  companies — capital  or  surplus 
-^investments.  No  company  incorporated  by  or  organized  under 
the  laws  of  any  other  state  or  government  shall  transact  busi- 
ness in  this  state  unless  it  is  possessed  of  the  actual  amount  of 
capital  required  of  any  company  organized  by  the  laws  of  this 
state,  or,  if  it  be  a  mutual  companj^  of  surplus  equal  in  amount 
thereto,  and  the  same  is  invested  in  bonds  of  the  United  States 
or  of  this  state  or  in  interest-paying  bonds,  when  they  are  at  or 
above  par,  of  the  state  in  which  the  company  is  located,  or  of 
some  other  state,  or  in  notes  or  bonds  secured  by  mortgages  on 


70  LIFE  INSURANCE  COMPANIES  Ch.  6,  T.  IX 

unincumbered  real  estate  Avithin  this  or  the  state  Avhere  such 
company  is  located,  Avorth  double  the  amount  leaned  thereon, 
which  securities  shall,  at  the  time,  be  on  deposit  with  the  super- 
intendent of  insurance,  auditor,  controller  or  chief  financial 
officer  of  the  state  by  whose  laws  the  company  is  incorporated, 
or  of  some  other  state,  and  the  commissioner  of  this  state  is  fur- 
nished with  a  certificate  of  such  officer,  under  his  official  seal, 
that  he  as  such  officer  holds  in  trust  and  on  deposit  for  the  bene- 
fit of  all  the  policyholders  of  such  company  the  securities  aboye 
mentioned.  This  certificate  shall  embrace  the  items  of  security 
so  held,  and  show  that  such  officer  is  satisfied  that  such  securities 
are  worth  one  hundred  thousand  dollars.  Nothing  herein  con- 
tained shall  invalidate  the  agency  of  any  company  incorporated 
in  another  state  by  reason  of  its  having  exchanged  the  bonds 
or  securities  so  deposited  with  such  officer  for  other  bonds  or 
securities  authorized  by  this  chapter,  or  by  reason  of  its  having 
drawn  its  interest  and  dividends  on  the  same.     [C.   '73,  §  1164.] 

Foreign.  Associations  17  94.  Fraternals  1829.  Other  than  Life 
1721-23-35.     Capital.     1769-83e,  g.     Other  than  Life  1691,  1701-21-69. 

Sec.  1773  (C.  C.  5482).  Annual  statement.  Tlie  president  or 
vice-president  and  secretary  or  actuary  or  a  majority  of  the 
directors  of  each  company  organized  hereunder  shall  annually, 
by  the  first  day  of  March,  prepare  under  oath  and  file  in  the 
office  of  the  commissioner  of  insurance  a  statement  of  its  affairs 
for  the  year  terminating  on  the  thirty-first  day  of  December 
preceding,  showing : 

1.  The  name  of  the  company  and  where  located; 

2.  The   names   of   officers; 

3.  The  amount  of  capital,  if  a  stock  company; 

4.  The  amount  of  capital  paid  in,  if  a  stock  company; 

5.  The  value  of  real  estate  owned  by  the  company; 

6.  The  amount  of  cash  on  hand; 

7.  The  amount  of  cash  deposited  in  banks,  giving  the  name  of  the 
bank  or  banks; 

8.  The  amount  of  cash  in  the  hands  of  agents,  and  in  the  course  of 
transmission; 

9.  The  amount  of  bank  stock,  with  the  name  of  each  bank,  giving  par 
and  market  value  of  the  same; 

10.  The  amount  of  bonds  of  the  United  States,  and  all  other  bonds 
and  securities,  giving  names  and  amounts,  with  the  par  and  market 
value  of  each  kind; 

11.  The  amount  of  loans  secured  by  first  mortgage  on  real  estate,  and 
where  such  real  estate  is  situated; 

12.  The  amount  of  all  other  bonds,  loans,  how  secured,  and  the  rate 
of  interest; 

13.  The  amount  of  premium  notes  and  their  value  on  policies  in 
force,  if  a  mutual  company; 

14.  The  amount  of  notes  given  for  unpaid  stock,  and  their  value  in 
detail,  if  a  stock  company; 

15.  The  amount  of  assessments  unpaid  on  stock  or  premium  notes; 

16.  The  amount  of  interest  due  and  unpaid; 

17.  The  amount  of  all  other  securities; 


Ch.  6,  T.  IX  LIFE   INSURANCE   COMPANIES  71 

18.  The  amount  of   losses  due  and   unpaid; 

19.  The  amount  of  losses  adjusted   but  not  due; 

20.  The  amount  of  losses  unadjusted; 

21.  The  amount  of  claims  for  losses  resisted; 

22.  The  amount  of  money  borrowed  and  evidences  thereof; 

23.  The  amount  of  dividends  unpaid  on  stock; 

24.  The   amount  of   dividends   unpaid   on  policies; 

25.  The  amount  required  to  safely  reinsure  all  outstanding  risks; 

26.  The  amount  of  all  other  claims  against  the  company; 

27.  The  amount  of  net  cash  premiums  received; 

28.  The  amount  of  notes  received  for  premiums; 

29.  The  amount  of  interest  received  from  all  sources;  > 

30.  The  amount  received  from  all  other  sources; 

31.  The   amount  paid   for   losses; 

32.  The  amount  of  dividends  paid  to  policyholders,  and  the  amount 
to  stockholders,  if  a  stock  company; 

33.  The  amount  of  commissions  and  salaries  paid  to  agents; 

34.  The  amount  paid  to  officers  for  salaries  and  other  compensation; 

35.  The   amount  paid   for   taxes; 

36.  The  amount  of  all  other  payments  and  expenditures; 

37.  The  greatest  amount  insured  on  any  one  life; 

38.  The  amount  deposited  in  other  states  or  territories  as  security  for 
policyholders  therein,  stating  the  amount  in  each  state  or  territory; 

39.  The  amount  of  premiums  received  in  this  state  during  the  year; 

40.  The  amount  paid  for  losses  in  this  state  during  the  year; 

41.  The  whole  number  of  policies  issued  during  the  year,  with  the 
amount  of  insurance  effected  thereby,  and  total  amount  of  risk; 

42.  All  other  items  of  information  necessary  to  enable  the  commis- 
sioner of  insurance  to  correctly  estimate  the  cash  value  of  policies,  or 
to  judge  of  the  correctness  of  the  valuation  thereof.  [15  0.  A.,  ch.  2,  § 
2;  C.  73,  §  1167.] 

See   1799.     Fraternal   1830-36.     Other  than   Life   1714-16. 
This  section  recognizes  the  existence  of  a  debt  from  the  company  to 
its  policy-holders.    Equitable  L.  Ins.  Co.  v.    Board  of  Equalization,  74-178. 

Sec.  1774  (C.  C.  5483).  Valuation  of  policies.  As  soon  as  prac- 
ticable after  the  filing  of  such  statement,  the  connnissioner  of 
insurance  shall  ascertain  tlie  net  cash  valne  of  every  policy  in 
force  upon  the  basis  of  the  American  table  of  mortality  and  foui* 
and  one-half  per  cent  interest,  or  actuaries'  combined  experience 
table  of  mortality  and  four  per  cent  interest,  in  all  companies 
organized  under  the  laws  of  this  state.  For  the  purpose  of  making- 
such  valuation  he  may  employ  a  competent  actuary,  who  shall 
be  paid  by  the  company  for  which  the  service  is  rendered;  but 
the  company  may  make  such  valuation,  and  it  shall  be  received 
])y  the  commissioner  upon  satisfactory  proof  of  its  correctness. 
The  net  cash  value  of  all  policies  in  force  in  any  such  company 
l)eing  ascertained,  the  commissioner  shall  notify  it  of  the  amount, 
and  Avithin  thirty  days  thereafter  the  officers  thereof  shall  deposit 
with  the  commissioner  the  amount  of  the  ascertained  valuation 
in  the  securities  specified  in  section  eighteen  hundred  and  six, 
chapter  eight  of  this  title.  No  stock  company  organized  under 
the  laws  of  this  state  sliall  be  required  to  make  such  deposit 
until  the  cash  value  of  the  policies  in  force,  as  ascertained  by  the 


72  LIFE  INSURANCE  COMPANIES  Ch.  6,  T.  IX 

commissioner,   exceeds   the   amount   deposited   by   it   as   capital. 
[21  G.  A.,  ch.  169;  17  G.  A.,  ch.  47;  C.  '73,  §  1169.] 

Valuation  of  Assessment  Association  policies  see  1798a.  Praternals 
1839J. 

Sec.  1775.  (C.  C.  5484).  Annual  certificate.  On  receipt  of 
such  deposit  and  statement,  and  the  statement  and  evidence  of 
investment  of  foreign  companies,  all  of  which  shall  be  renewed 
annually,  by  the  first  day  of  March,  the  commissioner  of  insurance 
shall  issue  a  certificate  setting  forth  the  corporate  name  of  the 
company,  its  home  office,  that  it  has  fully  complied  with  the 
laws  of  the  state  and  is  authorized  to  transact  the  business  of 
life  insurance  for  the  ensuing  year,  which  certificate  shall  expire 
on  the  first  day  of  April  of  the  ensuing  year,  or  sooner  upon 
thirty  days'  notice  given  by  the  commissioner  of  the  next  annual 
valuation  of  its  policies.  Such  certificates  shall  be  renewed 
annually,  upon  the  renewal  of  the  deposit  and  statement  by  a 
domestic  company,  or  of  the  statement  and  evidence  of  invest- 
ment by  a  foreign  company,  and  compliance  with  the  conditions 
above  required,  and  be  subject  to  revocation  as  the  original 
certificate.     [15  G.  A.,  ch.  2,  §  3;    C.  '73,  §  1170.1 

Sec.  1776.  (C.  C.  5485).  Penalty— dissolution.  Upon  a  failure 
of  any  company  organized  under  the  laws  of  this  state  to  make  tlie 
deposit  or  file  the  statement  in  the  time  herein  stated,  the  com- 
missioner of  insurance  shall  notify  the  attorney  general  of  the 
default,  who  shall  at  once  apply  to  the^  district  court  of  the 
county  where  the  home  office  of  such  company  is  located,  if  the 
court  is  in  session,  if  not,  to  any  judge  thereof,  for  an  order 
requiring  the  company  to  show  cause  upon  reasonable  notice,  to 
be  fixed  by  the  court  or  judge  as  the  case  may  be,  why  its  business 
shall  not  be  discontinued.  If,  upon  the  hearing,  no  sufficient 
cause  is  shown,  the  court  shall  decree  its  dissolution.  Companies 
organized  and  chartered  b}^  the  laws  of  a  foreign  state  or  country', 
failing  to  file  the  evidence  of  deposit  and  statement  within  the 
time  fixed,  shall  forfeit  and  pay  the  sum  of  three  hundred  dollars, 
to  be  collected  in  an  action  in  the  name  of  the  state  for  the  use 
of  the  school  fund,  and  their  right  to  transact  further  new  busi- 
ness in  this  state  shall  immediately  cease  until  the  requirements 
of  this  chapter  have  been  fullv  complied  with.  [15  G,  A.,  ch.  2, 
§4;C.  '73,  §  1171.] 

Sec.  1777.  (C.  C.  5486).  Examination  by  commissioner — ^re- 
ceiver. The  commissioner  of  insurance  at  anv  time  may  make  a 
personal  examination  of  the  books,  papers,  securities  and  busi- 
ness of  any  life  insurance  company  doing  business  in  this  state,  or 
authorize  any  other  suitable  person  to  make  the  same,  and  he  or 
the  person  so  authorized  may  examine  under  oath  any  officer  or 
agent  of  the  company  or  others,  relative  to  its  business  and  man- 


Ch.  G,  T.  TX  LIFE  INSURANCE   COMPANIES  73 

agement.  If  upon  such  examination  the  commissioner  is  of  the 
opinion  that  the  company  is  insolvent,  or  that  its  condition  is 
such  as  to  render  its  further  continuance  in  business  hazardous  to 
the  public  or  holders  of  its  policies,  he  shall  advise  and  communi 
cate  llu'  fuels  lo  llir  alloi'iicy  •iciici-iil,  who  shall  al,  once  apply 
to  the  district  court  of  the  county  or  any  .iudsje  thereof,  wliere 
tlie  home  office  of  a  domestic  company  or  an  agency  of  a  foreign 
company  is  located,  for  an  injunction  to  restrain  the  company 
from  transacting  further  business  except  the  payment  of  losses 
already  ascertained  and  due,  until  further  hearing,  and  for  tho 
appointment  of  a  receiver,  and,  if  a  domestic  company,  for  the 
dissolution  of  the  corporation.  The  judge  of  such  court  may 
grant  a  preliminary  injunction  with  or  without  notice,  as  he  may 
direct,  and  the  court,  on  the  final  hearing,  may  make  decree  sub- 
ject to  the  provisions  of  the  following!:  section  as  to  the  appoint- 
ment of  a  receiver,  the  disi)osition  of  the  deposits  of  the  company 
in  the  hands  of  the  commissioner,  and  its  dissolution,  if  a  domes- 
tic company.     [C.  73,  §  1172.] 

Applicable  1821,  a  to  g.  Fraternal  1839b,  c.  Other  than  Life  1700- 
31-53-55. 

In  an  action  to  close  the  business  of  a  corporation  for  failure  to  com- 
ply with  the  provisions  of  chapter  5,  title  IX,  of  the  Code  of  '73,  held,  that 
it  must  be  assumed  that  the  corporation  was  duly  organized,  ^tatc  ex  rel. 
V.  Iowa  Mut.  Aid  Assn.,  59-125. 

Rec.  1778.  (C.  C.  5487).  Securities.  The  securities  of  a  de- 
faulting or  insolvent  company,  or  a  company  against  which  pro- 
ceedings are  pending  under  the  preceding  section,  on  deposit  shall 
vest  in  the  state  for  the  benefit  of  the  policies  on  which  such 
deposits  were  made,  and  the  proceeds  of  the  same  shall,  by  the 
order  of  the  court  upon  final  hearing,  l)e  divided  among  the 
holders  thereof  in  the  proportion  of  the  last  annual  valuation 
of  the  same,  or  at  au}^  time  be  applied  to  the  purchase  of  reinsur- 
ance for  their  benefit.     [C.'73,  §  1173.] 

See  also  1699,  1791.     Applicable  1806-7.     Fraternals  1839  1. 

Sec.  1779.  (C.  C.  5488).  Change  of  securities.  Companies 
shall  have  the  right  at  any  time  to  change  the  securities  on  de- 
posit by  subsituting  a  like  amount  of  the  character  required  in 
the  first  instance.  If  the  annual  valuation  of  the  policies  in  force 
shows  them  to  be  less  than  the  amount  of  security  deposited,  then 
the  company  may  withdraw  such  excess,  but  twenty-five  thousand 
dollars  must  always  remain  on  deposit.     [C.  '73,  §  1174.1 

See  Sections  1791,  1806.     Fraternals  1839  1. 

Sec.  1780.  (0.  C.  5489).  Interest  collected.  Companies  hav- 
ing on  deposit  with  the  commissioner  bonds  or  other  securities 
may  collect  the  dividends  or  interest  thereon,  delivering  to  their 
authorized  agents  the  coupons  or  other  evidence  of  interest  as 


74  LIFE  INSURANCE  COMPANIES  Ch.  6,  T.  IX 

the  same  iDeeome  due,  but  if  any  company  fails  to  deposit  ad- 
ditional security  when  and  as  called  for  by  the  commissioner,  or 
pending  any  proceedings  to  close  up  or  enjoin  it,  the  commissioner 
of  insurance  shall  collect  such  dividends  or  interest  and  add  the 
same  to  such  securities.     [C.   73,  §  1175.] 

Sec.  1781.  (C.  C.  5465).  Commissioner's  annual  report.  Be- 
fore the  first  day  of  May  the  commissioner  of  insurance  shall 
make  an  annual  report  to  the  governor  of  the  general  conduct 
and  condition  of  the  companies  doing  business  in  the  state,  and 
include  therein  an  aggregate  of  the  estimated  value  of  all  out- 
standing policies  in  each  of  the  companies,  and  in  connection 
therewith  prepare  a  separate  abstract  thereof  as  to  each  company, 
and  of  all  the  returns  and  statements  made  to  him  bv  them. 
[0.  '73,  §  1176.] 

For  other  than  Life,  see  1720. 

Sec.  1782.  (0.  0.  5490).  Discriminations.  No  life  or  casualty, 
health  or  accident  insurance  company  or  association  shall  make 
or  permit  any  distinction  or  discrimination  between  persons 
insured  of  the  same  class  and  equal  expectancy  of  life  in  the 
amount  or  payment  of  premiums  or  rates  charged  for  policies  of 
life  or  endowment  insurance,  or  in  the  dividends  or  other  benefits 
payable  thereon,  or  in  any  other  of  the  terms  or  conditions  of  the 
contract  it  makes ;  nor  shall  any  such  company  or  association 
or  agent  thereof  make  any  contract  of  insurance  agreement, 
other  than  as  plainly  expressed  in  the  policy  issued;  nor  shall 
any  such  company  or  association  or  agent  pay  or  allow,  directl}^ 
or  indirectly,  as  an  inducement  to  insurance,  any  rebate  of  pre- 
mium payable  on  the  x^olicy,  or  any  special  favor  or  advantage 
in  the  dividends  or  other  benefits  to  accrue  thereon,  or  any 
valuable  consideration  or  inducement  whatever,  not  specified  in 
the  policy  or  contract  of  insurance.  [34  G.  A.,  ch.  18,  ^  13;  27 
G.  A.,  ch.  46,  §  1;  23  G.  A.,  ch.  33,  §  1.] 

Court  construed  the  word  "casualty"  so  that  it  includes  fire,  steam 
boiler  and  practically  all  coverage  under  Chapter  4.  Bankers  MuUial 
Casualty  Co.  v.  First  National  Bank,  131  loiva  456. 

The  provision  of  this  section  as  to  "any  contract  of  insurance  agree- 
ment other  than  as  plainly  expressed  in  the  policy  issued"  is  to  be 
limited  in  its  application  by  the  title  of  the  act  in  which  it  was  first 
enacted,  and  by  the  general  provisions  of  the  section,  and  is  therefore 
applicable  only  to  cases  of  discrimination.  Kelley  v.  Mutual  L.  his.  Co., 
109   Fed.,   56. 

The  provision  as  to  contracts  "plainly  expressed  in  the  policy  issued" 
includes  in  the  term  "policy"  the  provision  of  the  application  endorsed 
thereon,  in  accordance  with  code  §  1819.  Mutual  L.  Ins.  Co.  v.  Kelly. 
114   Fed.,   268. 

The  amendment  of  this  section  made  by  27  G.  A.,  ch.  46,  held  not 
applicable  where  the  policy  had  been  issued  and  the  death  had  occurred 
prior  to  the  taking  effect  of  the  amendment.  Beverly  v.  Northern  L. 
Assn.,  112-730. 


Ch.  6,  T.  IX  LIFE   INSURANCE   COMPANIES  75 


It  is  not  unlawful  for  an  insurance  company  to  discriminate  between 
policy-holders  and  those  who  are  not  policy-holders  in  the  loaning  of 
money,  nor  for  it  to  agree  that  one  who  takes  insurance  shall  have  a  loan 
thereon.     Key  v.  Natioiial  Life  Ins.  Co.,   107-446. 

Sec.  1783.  (C.  C.  5491).  Penalty.  Every  corporation,  officer 
or  agent  thereof  who  shall  knowingly  violate  any  of  the  provi- 
sions of  tlie  preceding  section  shall  forfeit  and  pay  a  sum  not 
exceeding  five  hundred  dollars,  to  be  recovered  by  an  action  in 
the  name  of  the  state  for  the  benefit  of  the  school  fund,  and  the 
license  may  be  revoked  for  three  vears,  in  the  discretion  of  the 
court.     [23  G.  A.,  ch.  33,  §  2.] 

Sec.  1783-a.  (C.  C.  5492).  Policy  forms  filed  with  commissioner 
of  insurance  for  approval.  It  shall  be  unlawful  for  any  insurance 
company  transacting  business  within  this  state,  under  the  pro- 
visions of  chapter  six  of  title  nine  of  the  code,  to  write  or  use 
any  form  of  policy  or  contract  of  insurance,  on  the  life  of  any 
individual  in  this  state,  until  a  copy  of  such  form  of  xx^licy  or 
contract  has  been  filed  with  and  approved  by  the  commissioner 
of  insurance.     [38  G.  A.,  ch.  348,  §  7 ;  30  G.  A.,  ch.  59,  §  1.] 

Other  than  Life  1745.     Standard  form  1758a. 

Sec.  1783-b.  (C.  C.  5493).  Medical  examination.  Said  officials 
shall  decline  to  approve  any  such  form  of  policy  or  contract  of 
insurance  unless  the  same  shall,  in  all  respects,  conform  to  the 
law^s  of  this  state  applicable  thereto  and  unless  the  issuance  of 
the  same  is  based  upon  a  satisfactory  medical  examination  of 
the  applicant  by  a  physician  duly  authorized  to  pvaetice  medicine 
or  by  an  osteopathic  physician  duly  authorized  to  jn-actiee  oste- 
opathy in  the  state  of  Iowa,  or  the  state  where  examined  and  no 
policy  or  contract  of  insurance  shall  be  issued  by  any  insurance 
compau}'  to  any  individual  in  this  state  until  such  examination 
shall  have  been  passed  and  duly  approved  by  the  medical  exam- 
iner or  medical  board  of  such  company.  Provided,  however,  that 
no  medical  examination  of  any  person  to  be  insured  under  an 
industrial  policy  shall  be  required  or  be  necessary  when  the 
amount  of  the  policy  of  insurance  is  five  hundred  dollars 
($500.00)  or  less.  [39  G.  A.,  ch.  223;  36  G.  A.,  H.  F.  116,  §  1 ;  30 
G.  A.,  ch.  59,  §  2.] 

Sec.  1783-c.  (C.  C.  5494).  Penalty.  Any  company  violating 
any  of  the  provisions  of  this  act  shall  upon  conviction  thereof, 
be  fined  in  a  sum  not  less  than  one  hundred  nor  more  than  one 
thousand  dollars  for  each  such  offense,  and  the  court  may  also 
revoke  its  authority  to  do  business  within  this  state.  Should 
any  company  decline  to  file  a  copy  of  its  form  of  policies  or  con- 
tracts, as  provided  in  this  act,  the  commissioner  of  insurance 
shall  suspend  ils  authority  to  transact  business  Avithin  the  state 
until  such  form  of  policies  or  contracts  have  been  so  filed  and 
approved.     [30  G.  A.,  ch.  59,  §  3.] 


76  LIFE  INSURANCE  COMPANIES  Ch.  6,  T.  IX 

Sec.  1783-d.  (C.  C.  5495).  Life  insurance  companies  may  write 
other  insurance.  Any  life  insurance  company  organized  on  the 
stock  or  mutual  plan  and  authorized  by  its  charter  or  articles  of 
incorporation  so  to  do,  may  in  addition  to  such  life  insurance, 
insure  either  individually  or  on  the  group  plan  the  health  of 
persons  and  against  personal  injuries,  disablement  or  death,  re- 
sulting from  traveling  or  general  accidents  by  land  or  water, 
and  insure  employers  against  loss  in  consequence  of  accidents  oi 
casualties  of  any  kind  to  employes  or  other  persons,  or  to  property 
resulting  from  any  act  of  the  employe  or  any  accident  or  casualty 
to  persons  or  property,  or  both,  occurring  in  or  connected  with 
the  transaction  of  their  business,  or  from  the  operation  of  any 
machinery  connected  therewith,  but  nothing  herein  contained 
shall  be  construed  to  authorize  any  life  insurance  company  to 
insure  against  loss  or  injury  to  person,  or  property,  or  both, 
growing  out  of  explosion  or  rupture  of  steam  boilers.  Every 
life  insurance  companj^  issuing  a  separate  policy,  or  maintaining 
a  separate  department,  for  the  purpose  of  writing  any  of  the 
classes  of  insurance  authorized  by  this  section  shall  also  be  sub- 
ject to  all  of  the  provisions  applicable  to  companies  authorized 
to  write  a  similar  kind  of  insurance  under  the  provisions  of 
chapter  4,  title  IX  of  the  code.  [39  G.  A.,  ch.  133 ;  38  G.  A.,  ch. 
348,  §  8;  31  G.  A.,  ch.  74.] 

Sec.  1783-e.     (0.  C.  5496).     Capital  stock — minimum  amount. 

From  and  after  the  taking  effect  of  this  act,  no  insurance  com- 
-pany  other  than  life  shall  be  incorporated  to  tranact  business 
upon  the  stock  plan  with  less  than  two  hundred  thousand  dollars 
($200,000)  capital,  the  entire  amount  of  which  shall  be  fully  paid 
up  in  cash  and  invested  as  provided  by  law.  No  part  of  the 
capital  referred  to,  shall  be  loaned  to  any  officer  or  stockholder 
of  the  company.  But  no  increase  of  the  capital  stock  of  any 
company  shall  hereafter  be  made  unless  the  amount  of  said  in- 
crease is  fully  paid  up  in  cash  and  such  company  sliall  be  pos- 
sessed of  a  surplus  in  cash  or  invested  in  securities  authorized  by 
law,  equal  to  twenty-five  (25)  per  cent  of  such  paid  up  and 
outstanding  capital  at  the  time  certificate  of  authority  is  first 
applied  for  and  issued.  [39  G.  A.,  ch.  261,  §  4;  32  G.  A.,  ch. 
79,  §  1.] 

See  sections  1769-72. 

See.  1783-g.  (C.  C.  5499).  May  not  advertise  authorized 
capital.  No  insurance  company  shall,  after  the  taking  effect  of 
this  act,  be  permitted  to  adverlise  or  publish  an  authorized 
capital,  or  to  represent  in  any  manner  itself  as  possessed  of  any 
greater  capital  than  that  actuallv  naid  iqi  and  invested  as  al)()ve 
provided.     [32  G.  A.,  ch.  79,  §  3.]' 

Sec.  1783.h.     (C.  C.  5500).     Penalties.     Any  person,  firm  or 


Ch.  6,  T.  IX  LIFE   INSURANCE   COMPANIES  77 

corporation  violating  any  of  the  provisions  of  this  act,  or  failing 
to  comply  with  any  of  its  provisions,  shall  be  subjected  to  the 
penalties  provided  in  section  four  of  cluipter  fifty-six,  acts  of 
the  thirtieth  general  assembly.     [32  G.  A.,  ch.  79,  §  4.] 

See  1821-d  herein.    Revocation  of  certificates. 

CIIAPTEK  li)7-38TII  G.  A. 
DEFINING  AND  AUTHORIZING  GROUP  LIFE  INSURANCE. 

(House  File  No.  546) 

AN  ACT  defining  group  life  insurance,  authorizing  chapter  six  (6)  life 
insurance  companies  to  issue  contracts  providing  for  such  group  life  in- 
surance, fixing  the  terms  under  which  such  group  life  insurance  can  be 
written,  prescribing  certain  provisions  and  conditions  to  be  embodied 
in  such  a  life  insurance  contract,  and  waiving  the  medical  examination 
required  by  section  seventeen  hundred  eighty-three-b  (1783-b),  supple- 
ment to  the  code,  1913,  in  all  cases  of  such  group  life  insurance. 

Be  It  Enacted  hy  the  General  Assemhly  of  the  State  of  Iowa: 

Section  1.  (C.  C.  5502).  Group  life  insurance  is  hereby  de- 
clared to  be  that  form  of  life  insurance  covering  not  less  than 
fifty  employes,  with  or  without  medical  examination,  written 
under  a  policy  issued  to  the  employer,  the  premium  on  which 
is  to  be  paid  by  the  employer  or  by  the  employer  and  emploj^es 
jointly,  and  insuring  only  all  of  his  emploj^es,  or  all  of  any  class 
or  classes  thereof  determined  by  conditions  pertaining  to  the 
employment,  for  amounts  of  insurance  based  upon  some  plan 
which  will  preclude  individual  selection,  for  the  benefit  of  persons 
other  than  the  employer;  provided,  however,  that  when  the 
premium  is  to  be  paid  by  the  employer  and  employe  jointly  and 
the  benefits  of  the  polic}^  are  offered  to  all  eligible  employes,  not 
less  than  seventy-five  per  centum  of  such  employes  may  be  so 
insured. 

Sec.  2.  (C.  0.  5503).  Any  level  premium  life  insurance  com- 
pany, organized  on  the  stock  or  mutual  plan  and  authorized  to 
transact  insurance  business  under  the  provisions  of  chapter  6, 
title  IX,  of  the  code,  may,  by  complying  with  the  provisions  of 
said  chapter  six  and  with  the  provisions  of  this  act,  issue  con- 
tracts providing  for  group  life  insurance  as  defined  in  section  1 
hereof. 

Sec.  3.  (C.  C.  5504).  No  policy  of  group  insurance  shall  be 
issued  or  delivered  in  this  state  unless  and  until  a  copy  of  the 
form  thereof  has  been  filed  with  the  commissioner  of  insurance 
and  approved  by  liim;  nor  shall  such  i^olicy  be  so  issued  or  de- 
livered unless  it  contains  in  substance  the  following  provisions: 

(1)  A  provision  that  the  |)()licy  shall  be  incontestable  after 
two  years  from  its   date  of  issue,   except  for  non-payment   of 


78  LIFE  INSURANCE  COMPANIES  Cli.  6,  T.  IX 

premiums  and  except  for  violation  of  the  conditions  of  the  policy 
relating  to  military  or  naval  service  in  time  of  war. 

(2)  A  provision  that  the  policy,  the  application  of  the  em- 
ployer and  the  individual  applications,  if  any,  of  the  employees 
insured,  shall  constitute  the  entire  contract  between  the  parties, 
and  that  all  statements  made  by  the  employer  or  by  the  individual 
employees  shall,  in  the  absence  of  fraud,  be  deemed  representa- 
tions and  not  warranties,  and  that  no  such  statement  shall  be 
used  in  defense  to  a  vlaim  under  the  policy,  unless  it  is  contained 
in  a  written  application. 

(3)  A  provision  for  the  equitable  adjustment  of  the  premium 
or  the  amount  of  insurance  payable  in  the  event  of  a  misstate- 
ment of  the  age  of  an  employee. 

(4)  A  provision  that  the  company  will  issue  to  the  employer 
for  delivery  to  the  emiDloyee,  whose  life  is  insured  under  such 
policy,  an  individual  certificate  setting  forth  a  statement  as  to 
the  insurance  protection  to  which  he  is  entitled,  to  whom  payable, 
together  with  provision  to  the  effect  that  in  case  of  the  termina- 
tion of  the  employment  for  any  reason  whatsoever  the  employee 
shall  be  entitled  to  have  issued  to  him  by  the  company,  without 
further  evidence  of  insurability,  and  upon  application  made  to 
the  company  within  thirty-one  da3\s  after  such  termination  and 
upon  the  payment  of  the  premium  applicable  to  the  class  of  risk 
to  which  he  belongs  and  to  the  form  and  amount  of  the  policy 
at  his  then  attained  age,  a  policy  of  life  insurance  in  any  one  of 
the  forms  customarily  issued  by  the  company,  except  term  in- 
surance, in  an  amount  equal  to  the  amount  of  his  protection  under 
such  group  insurance  policy  at  the  time  of  such  termination. 

(5)  A  provision  that  to  the  group  or  class  thei'eof  originally- 
insured  shall  be  added  from  time  to  time  all  new  employees  of 
the  employer  eligible  to  insurance  in  such  group  or  class. 

Policies  of  group  insurance,  when  issued  in  this  state  by  any 
company  not  organized  under  the  laws  of  this  state,  may  contain, 
when  issued,  any  provision  required  by  the  law  of  the  state  or 
territory,  or  district  of  the  United  States  under  wliich  the  com- 
pany is  organized ;  and  policies  issued  in  other  states  or  countries 
by  companies  organized  in  this  state,  may  contain  any  provision 
required  by  tlie  laws  of  the  state,  territory,  district  or  country, 
in  which  the  same  are  issued,  anything  in  this  section  to  the 
contrary  notwithstanding.  Any  such  policy  may  be  issued  or  de- 
livered in  this  state  which  in  ilie  o]")inion  of  tlie  comniissioiier  of 
insurance  contains  provisions  on  any  one  or  more  of  tlie  severed 
foregoing  requirements  more  favoi-able  to  the  employer  or  to 
employee  than  hereinbefore  required. 

(C.   0.   5505).     In   every   group   policy   issued  by   a   domestic 


Ch.  6,  T.  TX  LIFE   INSURANCE   COMPANIES  79 

life  insurance  company,  the  employer  shall  be  deemed  to  be  the 
policyholder  for  all  purposes  within  the  meaning  of  this  chapter, 
and,  if  entitled  to  the  vote  at  meetings  oL'  the  company,  shall  be 
entitled  to  one  vote  thereat. 

Sec.  4.  (C.  C.  5506).  No  policy  of  group  insurance,  nor  the 
proceeds  thereof,  when  paid  to  any  employee  or  employees  there- 
under, shall  be  liable  to  attachment,  garnishment,  or  other 
process,  or  to  be  seized,  taken,  appropriated  or  applied  by  any 
legal  or  ecjuitable  process,  or  operation  of  law,  to  pay  any  debt  or 
liabilitj^  of  such  employee,  or  his  beneficiary,  or  any  other  person 
who  may  have  a  right  thereunder,  either  before  or  after  payment ; 
nor  shall  the  proceeds  thereof,  when  not  made  payable  to  a  named 
l)eneficiary,  constitute  a  part  of  the  cstnte  of  the  employee  for  the 
payment  of  liis  del)ts. 

Sec.  5.  (C.  C.  5507).  Tlie  provisions  of  section  seventeen  hun- 
dred eighty-three-b  (1783-b),  supplement  to  the  code,  1913,  relat- 
ing to  medical  examination  of  applicants,  shall  not  apply  to  in- 
surance Avritten  under  this  act. 

Efeective  July  4,  1919. 

CHAPTER  304— 38th  G.  A. 

GRANTING    POWER    TO    LIFE    INSURANCE    COMPANIES    TO    HOLD 

FUNDS  IN  TRUST. 

(Senate  File  No.    436) 

AN  ACT  authorizing  life  insurance  companies  to  act  as  trustee  of  the 
proceeds  of  certain  insurance  policies.  (This  act  is  additional  to 
chapter  six  (6),  title  nine  (IX),  of  the  supplement  to  the  code,  1913). 

Be  It  Enacted  hij  the  General  Assembly  of  the  State  of  Iowa: 

Section  1.  (C.  C.  5501).  Anj^  life  insurance  company  organized 
under  the  provisions  of  chapter  six,  title  nine  of  the  code,  and 
acts  amendatory  thereof,  and  doing  business  in  this  state,  shall 
have  the  power  to  hold  in  trust  the  proceeds  of  any  life  insurance 
policj'  issued  by  it,  upon  such  terms  and  subject  to  such  limita- 
tions as  to  revocation  by  the  policyholder  and  control  by  the 
beneficiar}'  thereunder,  as  shall  have  been  agreed  to  in  writing 
by  such  company  and  the  policy-holder.  Provided,  that  the  trust 
provisions  herein  contemplated  shall  in  no  manner  subject  said 
corporation  to  any  of  the.  provisions  of  the  laws  of  Iowa  relating 
to  banks  or  trust  companies ;  and  provided  further,  tliat  the  forms 
of  such  trust  agreements  shall  be  first  submitted  to  and  approved 
by  the  commissioner  of  insurance  of  Iowa. 

In  effect  by  publication  April  29,  1919. 


80  ASSESSMENT  ASSOCIATIONS  Ch.  7,  T.  IX 


CHAPTER  198— 39th  G.  A. 

AN  ACT  to  authorize  the  valuation  of  bonds  and  other  securities  held 
by  life  insurance  companies,  assessment  life  associations  and  fraternal 
beneficiary  associations  by  the  amortization  method. 

Be,  It  Enacted  hy  the  General  Asseinhly  of  the  State  of  Iowa: 

Section  1.  (C.  C.  5597-al).  All  bonds  or  other  evidences  of  debt 
having  a  fixed  term  and  rate  held  by  any  life  insurance  company, 
assessment  life  association  or  fraternal  beneficiary  association 
authorized  to  do  business  in  this  state  may,  if  amply  secured  and 
not  in  default  as  to  principal  and  interest,  be  valued  as  follows : 

* 

If  purchased  at  par,  at  the  par  value;  if  purchased  above  or 
below  par,  on  the  basis  of  the  purchase  price  adjusted  so  as  to 
bring  the  value  to  par  at  maturity  and  so  as  to  yield  in  the  mean- 
time the  effective  rate  of  interest  at  Avhich  the  purchase  Avas 
made;  provided  tliat  the  purchase  price  shall  in  no  case  bo  taken 
at  a  higher  figure  than  the  actual  market  value  at  the  time  of 
purchase;  and,  provided  further,  that  the  commissioner  of  in- 
surance shall  have  full  discretion  in  determining  the  uu^liod  of 
calculating  values  according  to  the  foregoing  rule. 

CHAPTER  7,  TITLE  IX,  CODE. 

ASSESSMENT      LIFE,      HEALTH      AND      ACCIDENT      INSURANCE 

ASSOCIATIONS. 

Sec.  1784.  (C.  C.  5508).  Defined.  Every  corporation  organized 
upon  the  assessment  plan,  for  the  purpose  of  insuring  the  lives 
of  individuals  or  furnishing  benefits  to  the  widows,  heirs,  orphans 
or  legatees  of  deceased  members,  or  insuring  the  health  of  persons 
or  furnishing  accident  indemnity,  shall  be  styled  an  association, 
and  any  corporation  doing  business  under  this  chapter  which 
provides  for  the  payment  of  policy  claims,  accumulation  of  a 
reserve  or  emergency  fund,  the  expense  of  management  and 
prosecution  of  the  business,  by  payment  of  assessments  as  pro- 
vided in  its  contracts,  and  wherein  the  liability  of  the  insured 
to  contribute  to  the  payment  of  policy  claims  is  not  limited  to  a 
fixed  amount,  shall  be  deemed  to  be  engaged  in  the  business  of 
life  insurance  upon  the  assessment  plan,  and  shall  be  subject^  to 
the  provisions  of  this  chapter,  and  chapter  eight,  of  title  nine 
of  the  code.  [31  G.  A.,  ch.  75 ;  28  Cx.  A.,  ch.  65,  §  1 ;  21  G.  A., 
ch.  65,  §  1.] 

A  company  operating  on  the  mutual  assessment  plan  is  not  relieved 
from  the  provisions  of  this  chapter  by  the  provisions  of  code  §  1798 
exempting  from  its  operation  associations  organized  solely  for  benevolent 
purposes.     Gonnell  v.  lotva  State  Trav.  Men's  Assii.,  139-444. 

The  association  cannot  amend  its  by-laws  in  such  manner  as  to  affect 
the  promise  of  the  society  to  pay  a  particular  sum  to  the  insured.     A 


Ch.  7,  T.  IX  ASSESSMENT  ASSOCIATIONS  81 

member  has  the  right  to  rely  on  the  terms  of  his  contract.  Fort  v.  Iowa 
Legion  of  Honor,  146-183, 

The  general  power  to  amend  the  bj^-laws  reserved  by  the  socie-ty  does 
not  authorize  an  amendment  which  impairs  the  vested  rights  of  the 
members.     Ibid. 

Where  the  association  eo  amended  its  by-laws  as  to  repudiate  its  exist- 
ing contracts  and  to  provide  for  a  new  rate  of  assessment  on  a  diminished 
policy,  held  that  failure  to  tender  the  amount  due  under  the  original 
contract  did  not  defeat  his  right  of  action  to  recover  damages  for  breach 
of  contract  by  such  charge.     Ibid. 

The  fact  that  the  association  has  no  funds  with  which  to  pay  a  judg- 
ment does  not  defeat  the  right  to  recover  damages  for  repudiation  of  the 
contract.    Ibid. 

Where  the  assured  agrees  to  be  bound  by  amendments  to  the  by-laws 
or  articles  subsequently  adopted,  he  must  take  notice  thereof  and  is  as 
effectually  concluded  thereby  as  by  those  existing  at  the  time  of  issu- 
ance of  his  certificate  or  policy.    Elliott  v.  Home  Miit.  Hail  Assn.,  160-105. 

The  statute  recognizes  the  authority  of  such  associations  to  insure  for 
the  benefit  of  legatees  and  in  the  absence  of  limitation  prescribed  in  the 
articles  or  by-laws,  it  is  presumed  that  persons  of  any  class  enumeratea 
in  the  statute  may  be  beneficiaries.  Brinsmaid  v.  loioa  State  Trav.  Men's 
Assn.,  1.52-134. 

Members  of  a  mutual  benefit  association  are  bound  to  take  notice  ot 
and  be  governed  by  its  by-laws.  Fitzgerald  v.  Metropolitan  Ace.  Assn., 
106-457. 

The  statutory  provisions  with  reference  to  mutual  benefit  associations, 
held  to  be  applicable  to  an  association  organized  under  such  provisions, 
although  it  had  not  flilly  complied  therewith.     Crocker  v.  Hogin,  103-243. 

Life  insurance  companies,  except  as  otherwise  specially  provided,  are 
incorporated  under  the  general  provisions  as  to  the  formation  of  corpora- 
tions.    Krause  v.  Modern  Woodmen,  133-199. 

Where  the  deceased  acoidentally  received  a  wound  on  his  finger,  caus- 
ing infiammation,  which  developed  into  blood  poisoning,  resulting  in  his 
death,  such  death  resulted  from  a  disease  which  followed  as  a  natural 
consequence  of  the  physical  injury,  and  was  an  accidental  death  within  a 
policy  requiring  that  death  must  result  solely  from  accidental  injuries. 
Delaney  v.  Modem  Ace.  Club,  121-528. 

Under  the  constitution  of  the  association  known  as  the  Ancient  Order  of 
United  Workmen,  held,  that  such  association,  notwithstanding  its  fra- 
ternal character,  was  in  effect  a  mutual  insurance  company,  and  that  the 
supreme  lodge  of  that  corporation,  being  incorporated  under  the  laws  of 
Kentucky,  was  not  authorized  to  exercise  any  powers  or  do  business  ii; 
Iowa  without  compliance  with  the  laws  of  Iowa  with  reference  to  life 
insurance  companies.     State  ex  rel.  v.  Miller,  66-26. 

Where  one  of  the  objects  of  an  association  is  to  pay  to  the  beneficiaries 
a  sum  of  money  upon  the  death  of  a  member  which  is  to  be  raised  by 
assessments  upon  other  members  it  is  to  be  deemed  an  insurance  com- 
pany.    Grimes  v.  Northicestern  Legion  of  Honor,  97-315. 

Former  provisions  of  this  character,  held  applicable  to  a  fraternal 
society  such  as  the  Ancient  Order  of  United  Workmen,  ha^^ing  life  insur- 
ance and  insurance  against  sickness  and  disability  as  its  main  object. 
State  ex  rel.  v.  Nichols,  78-747. 

Mutual  aid  associations  organized  to  furnish  financial  aid  and  benefits 
to  the  families  of  deceased  members  on  the  payment  of  membership  fees, 
dues  and  assessments,  held,  not  to  be  within  the  former  provisions  as  to 
life  insurance  companies.  State  ex  rel.  v.  Iowa  Mut.  Aid  Assn.,  59-125. 
And  see  §  1798. 

A  railroad  relief  association  organized  by  the  railroad  company  for  the 
benefit  of  employes  who  participate  therein  is  not  a  life  insurance  com- 
pany.    Maine  v.  Chicago,  B.  d  Q.  R.  Co.,  109-260. 


82  ASSESSMENT  ASSOCIATIONS  Cli.  7.  T.  IX 


An  employe,  member  of  such  association  who  has  accepted  the  benefits 
provided  for  by  his  contract  of  membership  is  bound  by  the  terms  of 
such  contract.     Jhid. 

Sec.  1785  (C.  C.  5509).  Articles  of  incorporation — certificates. 
''Certificates  of  membership"  or  "certificate,"  when  used  in  this 
chapter  with  respect  to  the  insurance  of  the  members,  shall  be 
taken  to  mean  and  include  policy  of  insurance.  The  articles  of 
incorporation  and  bj^-laws  of  any  such  association  shall  show  its 
plan  of  business,  and  be  submitted  to  the  commissioner  of  in- 
surance and  the  attorney-general,  and  if  they  are  found  b.y  those 
officers  to  complj^  with  the  provisions  of  this  title,  chapter  and 
of  law,  they  shall  approve  the  same.  When  the  articles  are 
thus  approved,  they  shall  be  recorded  in  the  office  of  the  secre- 
tary of  state,  and  a  notice  published  within  ninety  days  in  the 
manner  and  for  the  time  provided  in  the  general  incorporation 
laAvs.     [39  G.  A.,  ch.  58,  §  1 ;  21  G.  A.,  ch.  65,  §  2.] 

See  1768.     Fraternals  1832.     Other  than  Life  1685. 

The  president  and  the  board  of  directors  of  a  mutual  life  association 
are  both  governed  by  the  association's  articles  of  incorporation  and  the 
statues  of  the  state  defining  and  limiting  their  respective  duties  and 
powers.     Slierman  v.  Harlyin  et  al.,   125-174. 

Where  the  articles  of  incorporation  of  a  mutual  benefit  life  insurance 
association  provide  that  the  beneficiaries  shall  be  entitled  to  a  sum  equal 
to  what  would  be  realized  from  an  assessment  upon  all  members,  as  shown 
by  the  books,  at  the  time  of  death,  but  in  no  case  shall  the  sum  exceed 
the  amount  stated  in  the  certificate,  and  also  provide  for  a  mortuary  fund, 
to  be  raised  by  assessments,  from  which  death  losses  shall  be  paid,  and 
the  certificate  itself  stipulates  that  the  beneficiaries  shall  receive  a  definite 
sum,  the  amount  due  to  be  provided  for  by  assessment,  etc.,  as  provided 
for  in  the  articles  of  incorporation,  the  beneficiary  is  entitled  to  a  money 
judgment,  and  not  merely  a  mandatoi^y  order  to  make  and  pay  over  the 
proceeds  of  an  assessment.  Thornhurg  v.  Farmrrs'  Life  Association,  122- 
260. 

The  burden  is  on  the  defendant  association  to  show  that  an  assessment 
at  the  time  of  the  member's  death  would  not  have  yielded  the  full  amount 
named  in  the  certificate.    Ibid. 

Sec.  1786.  (C.  C.  5510).  Name.  No  such  association  shall  take 
any  name  in  use  by  another  organization,  or  one  so  closely  re- 
sembling it  as  to  mislead  the  public  as  to  its  identitv.  [21  G.  A., 
ch.  65,  §  3.] 

See  other  than  Life,  Sec.  1687. 

The  provisions  of  Code  §  1689  as  to  including  the  word  "mutual"  in 
the  name  of  a  mutual  company  has  no  application  to  associations  organ- 
ized under  this  chapter.     Moore  v.  Union  Frat.  Ace.  Assn.,  103-424. 

The  action  of  the  auditor  [commissioner  of  insurance]  in  determining 
the  name  under  which  the  association  may  do  business  is  not  conclusive 
as  to  another  association  claiming  a  prior  right  to  the  use  of  the  same  or 
a  similar  name.     Grand  Lodge  v.  Graham,  96-592. 

Therefore  held,  that  plaintiff,  an  association  of  the  character  contem- 
plated in  this  section  and  authorized  to  do  business  under  the  name  of 
the  Grand  Lodge  of  the  Ancient  Order  of  United  Workmen  of  Iowa,  could 
not  enjoin  an  unincorporated  society  or  voluntary  association  from  using 


Ch.  7,  T.  IX  ASSESSMENT  ASSOCIATIONS  83 


the  name,  it  appearing  that  defendant  had  a  prior  right  to  the   use  of 
such   name.     JMd. 

Sec.  1787.  (C.  C.  5511).  Conditions  for  commencing  business 
— approval  of  policy  forms.  Before  issuing-  any  policy  or  certifi 
cate  of  menibersliip,  if  the  association  at  the  time  has  not  a  mem- 
bership sufficient  to  pay  the  full  amount  of  its  certificate  or  policy 
on  an  assessment,  it  shall  cause  all  applications  for  insurance  to 
have  printed  in  red  ink,  in  a  conspicuous  manner  along  the  margin 
thereof,  the  words:  ''It  is  understood  that  the  amount  of  insur 
ance  to  be  paid  under  this  application,  and  certificate  or  policy 
issued  thereon,  shall  depend  upon  the  amount  collected  from  an 
assessment  therefor."  It  must  have  actual  applications  upon  at 
least  two  hundred  fifty  lives  for  at  least  one  thousand  dollars 
each;  and  it  shall  file  with  the  commissioner  of  insurance  satis- 
factory proof  that  the  president,  secretary  and  treasurer  have 
each  given  a  good  and  sufficient  bond  for  five  thousand  dollars 
for  the  faithful  discharge  of  their  duties  as  such  officers,  sworn 
copies  of  which  shall  be  filed  with  him.  It  shall  also  file  ^yith  him 
a  list,  verified  by  the  president  and  secretary,  of  the  applications, 
giving  the  name,  age  and  residence  of  each  applicant,  the  amount 
of  insurance  applied  for  by  each,  together  with  the  annual  dues 
and  the  proposed  assessments  thereon.  Its  policy  forms  shall 
-be  approved,  as  provided  by  section  seventeen  hundred  eighty- 
three-a  of  the  supplement  to  the  code,  1907.  [34  G.  A.,  ch.  18, 
§  14;  21  G.  A.,  ch.  65,  §4.] 

See   1724-25.     Fraternals   1832;    also   §    1783a. 

Under  the  bond  given  by  the  president  of  an  assessment  life  insur 
ance  company,  the  sureties  are  not  liable  to  a  receiver  of  the  company  for 
moneys  wrongfully  paid  by  him  to  one  member  which  were  collected  for 
the  benefit  of  another  who  has  in  turn  been  satisfied  from  funds  subse- 
quently collected  or  for  money  misappropriated  after  the  expiration  of 
the  bond.     Sherman  v.  Hnrlnn,  124-643;   125-174. 

Any  act  of  the  president  of  the  association  contrary  to  his  duty  under 
its  articles  of  incorporation,  even  though  directed  or  acquiesced  in  by  the 
board  of  directors,  constitutes  a  breach  of  duty  involving  liability  of  the 
surety  on  his  official  bond  if  it  results  in  loss  to  the  association.  Sherman 
V.   Harbin,   125-174;    124-643. 

A  new  bond  executed  on  re-election  for  another  year  is  a  new  and  inde- 
pendent undertaking  and  not  a  continuance  of  the  bond  for  the  previous 
year,     roicl. 

Auditing  the  books  of  the  company  being  no  part  of  the  duty  of  the 
president,  he  is  not  liable  under  his  official  bond  for  not  discovering 
errors  overlooked  by  the  auditing  committee.     Ibid. 

The  act  of  the  president  in  diverting  the  beneficiary  fund  to  the  pay- 
ment of  expenses  in  resisting  claims  renders  him  liable  on  his  bond.    Ibid. 

If  the  obligation  of  the  association  is  no  more  than  to  levy  an  assess- 
ment on  its  members  and  pay  the  benefit  or  indemnity  stipulated  from 
the  proceeds  derived  therefrom,  then  the  remedy  is  in  equity  to  compel  an 
assessment  and  an  action  at  law  cannot  be  maintained.  But  if  the  con- 
tract, whether  contained  in  the  certificate  of  membership,  the  articles  of 
incorporation  or  by-laws,  is  for  the  payment  of  defined  or  fixed  sums 
upon  the  happening  of  specific  contingencies,  then  the  remedy  is  at  law. 
Frank  v.  Interstate  Business  Men's  Act:  Assn.,  151-684. 


84  ASSESSMENT   ASSOCIATIONS  Ch.  7,  T.  IX 


Where  the  plan  of  the  association  requires  that  assessments  be  col- 
lected quarterly  and  that  the  sums  provided  in  the  contract  be  paid 
on  the  death  of  the  member  out  of  the  proceeds  of  assessments  on  hand 
derived  either  from  annual  dues  or  assessments,  then  the  action  is 
properly  at  law  even  though  the  amount  to  be  paid  is  subject  to  the  lim- 
itation that  it  cannot  exceed  the  assessment  of  a  certain  amount  per 
member  in  good  standing  at  the  time  of  the  injury.    Idid. 

Fidelity  bonds  of  the  president  of  a  mutual  life  association  organized 
under  chapter  65,  acts  of  the  Twenty-first  General  Assembly,  though  run- 
ning to  the  association,  may  be  enforced  by  any  one  for  whose  benefit 
they  were  executed.    Sherman  v.  Harhin  et  al.,  124-643;  125-174. 

Sec.  1788  (CO.  5512).  Assessments.  The  articles  and  by-laws 
of  each  such  association  and  its  notices  of  assessments  shall  state 
the  objects  to  which  the  monej^  to  be  collected  is  to  be  devoted, 
and  no  part  of  the  proceeds  thereof  shall  be  applied  to  any  other 
purpose  than  as  stated  and  the  excess,  if  any,  beyond  payment 
of  the  benefit,  shall  be  set  aside  and  applied  only  to  like  purposes, 
except  that  all  sums  collected  for  expenses  and  not  used  for  that 
purpose  may  be  transferred  to  the  benefit,  emergency  or  reserve 
fuM.     [21  G.  A.,  ch.  65,  §  6;  30  G.  A.,  ch.  60.] 

The  design  of  this  section  was  not  to  compel  the  specification  in  the 
notices  of  assessment  of  particular  items  on  which  the  moneys  collected 
would  be  expended.  A  general,  but  inclusive,  statement  of  the  objects 
or  purpose  of  the  assessment  is  sufficient.  Mulherin  v.  Bankers  Life  Ins. 
Co.,  163-740. 

While  in  the  enforcement  of  a  claim  for  a  death  loss  against  a  mutual 
benefit  association  resort  must  be  had  in  the  first  place  to  an  action  in 
mandamus  to  compel  a  levy  of  an  assessment,  yet,  where  the  corporation 
fails  to  make  the  levy  at  a  time  when  it  would  be  effectual  in  furnishing 
the  fund  for  the  payment  of  the  claim,  and  postpones  it  until  long  after, 
when  by  reason  of  decrease  in  the  membership  in  the  association  it  be- 
comes ineffectual,  the  association  may  be  held  liable  in  damages.  Christu 
V.  loiva  L.  Ins.  Co.,  111-177. 

In  such  case  interest  from  the  time  the  money  should  have  been  col- 
lected and  paid  over  under  the  terms  of  the  contract  may  be  added.    IMd. 

The  beneficiaries  being  entitled  to  the  amount  realized  on  particulai 
assessments  under  their  certificates,  the  misappropriation  of  an  assess- 
ment made  for  a  loss  under  one  certificate  to  the  payment  of  a  loss  under 
a  different  certificate,  does  not  give  rise  to  an  action  on  the  bond  of  the 
officer  making  such  appropriation  at  the  suit  of  the  receiver  of  the  com- 
pany.    Sherman  v.  Harbin.  124-643;  125-174. 

The  provisions  of  section  1788  of  the  Code,  that  the  articles,  by-laws, 
and  notices  of  assessment  of  assessment  life  insurance  associations  shall 
state  the  object  to  which  the  money  to  be  collected  is  to  be  devoted,  and 
that  no  part  of  the  proceeds  shall  be  applied  to  any  other  purpose,  apply 
only  to  assessments,  and  not  to  dues  for  contingent  expenses  or  fixed 
charges,  such  as  an  agent's  commission  charge  on  policy  renewals. 
Schrimplin  v.  Farmers'  Life  Assn.,  123-102. 

Moneys  collected  from  assessment  levied  in  accordance  with  the  pro- 
visions of  section  1788  of  the  Code,  should  be  applied  on  the  particular 
loss  for  which  the  aissessment,  or  a  specific  proportion  thereof,  was  raised, 
and  that  neither  the  association  nor  its  officers  were  entitled  to  direct 
the  same  to  other  liabilities  or  losses,  Sherman  v.  Harbin  et  al.,  124-643; 
125-174. 

Where  benefit  assoesments  levied  by  a  mutual  life  association  belonged 
to   certain   of   its  beneficiaries,   and   the  association's   articles   contained 


Ch.  7,  T.  IX  ASSESSMENT  ASSOCIATIONS  85 

other  provisions  for  ordinary  expenses  and  those  incident  to  the  protec- 
Lion  of  the  association  against  unjust  claims,  the  association's  officers  haa 
no  authority  to  use  money  received  from  benetit  assessments,  made  to  pay 
death  losses,  for  the  payment  of  expenses  incuired  in  the  litigation  of 
alleged  unjust  claims,     islierman  v.  Harbin  et  al.,  J2r)-174;  J:i4-t)4:i. 

Where  the  by-laws  of  an  insurance  company  provided  several  sources 
from  which  death  losses  might  be  paid,  and  it  was  nowhere  indicated 
that  an  assessment  must  necessarily  be  made  for  each  loss,  a  by-law 
providing  that  a  beneliciary  should  be  entitled  to  a  sum  of  money  equal 
to  what  would  be  realized  from  an  assessment  from  all  members  in  good 
standing  at  insured's  death,  not  exceeding  the  amount  of  the  certificate, 
did  not  make  the  levy  of  an  assessment  a  condition  precedent  to  insurer's 
lialiility.     Wood  v.  Farmers'  Life  Ass7i.,  121-44. 

Where  decedent's  certificate  in  a  mutual  benefit  association  provided 
that  on  decedent's  failure  to  pay  stipulated  assessments  as  agreed,  the 
contract  should  "close  and  be  of  no  effect,"  and,  prior  to  the  making  of  a 
contract  between  the  association  and  defendant  for  the  reinsurance  of  all 
of  the  association's  members  in  good  standing  at  the  time  the  contract 
was  made,  deceased  had  refused  to  pay  assessments  levied,  on  the  ground 
that  they  were  unjust,  he  acquired  no  rights  under  the  association's 
contract  of  insurance.     Parvin  v.  Mutual  I'eserve  Life  Ins.  Co.,  125-95. 

The  liability  of  a  member  of  a  mutual  benefit  company  is  to  be  de- 
termined by  an  assessment  on  the  basis  of  membership  at  the  time  of  the 
loss  and  not  at  the  time  an  assessment  is  made  by  order  of  court  to  pay 
such  loss.     Collins  v.  Bankers'  Ace.  Assn.,  96-216. 

Where  it  was  provided  that  the  failure  to  pay  assessments  did  not 
work  an  absolute  forfeiture  till  the  expiration  of  six  months,  held,  that 
the  receipt  of  intermittent  dues  during  the  six  months  was  not  a  waiver 
of  the  default  where  the  member  did  not,  during  the  six  months,  take  the 
steps  necessary  for  reinstatement.  Leffingwell  v.  Grand  Lodge  A.  0.  U.  W., 
86-279. 

Where  the  contract  was  between  the  subordinate  lodge  and  the  mem- 
ber, held,  that  the  member  had  no  right  to  offset,  as  against  dues,  com- 
pensation due  him  under  a  contract  with  the  grand  lodge.    Ibid. 

Sec.  1789.  (0.  C.  5513).  Insurable  age — beneficiary — assign- 
ment of  policy.  No  association  organized  or  operating  under  this 
chapter  shall  issue  a  certificate  of  membership  to  any  person 
under  fifteen  nor  over  sixty-five  years  of  age,  nor  unless  the 
beneficiary  named  in  the  certificate  is  the  husband,  wife,  relative, 
legal  representative,  heir,  creditor  or  legatee  of  the  insured  mem- 
ber, nor  shall  any  such  certificate  be  assigned.  Any  certificate 
issued  or  assignment  made  in  violation,  of  this  section  shall  be 
void.  The  beneficiary  named  in  the  certificate  may  be  changed 
at  any  time  at  the  pleasure  of  the  assured,  as  may  be  provided  for 
in  the  articles  or  by-laws,  but  no  certificate  issued  for  the  bene- 
fit of  a  wife  or  children  shall  be  thus  changed  so  as  to  become 
payable  to  the  creditors.     [21  G.  A.,  ch.  65,  §  7.] 

Applicable,  see  1813.    Fraternals  1824. 

Age:  An  association  is  not  precluded  by  the  provisions  of  this  section 
from  assuming  by  consolidation  the  liability  of  another  association  to  a 
member,  although  at  the  time  of  such  consolidation  the  member  is  over 
the  age  when  a  valid  certificate  could  have  been  issued.  Catlicart  v. 
Equitable  Mut.  L.  Assn.,  111-471. 

A  company  whose  articles  do  not  prohibit  the  insurance  of  persons  over 
the  age  specified  by  Code  §  1789  cannot  by  its  by-laws  render  a  contract 


86  ASSESSMENT  ASSOCIATIONS  Ch.  7,  T.  IX 


of  insurance  with  a  person  witliin  tbe  statutory  age  ultra  vires  and  void. 
Krause  v.  Modern  Woodmen,  133-199, 

The  provision  as  to  change  of  beneficiaries  relates  to  tlie  certificate 
and  not  to  the  fund,  and  the  word  "assignment"  as  here  used  is  equivaleni 
to  the  word  "endorsement."  A  beneficiary  who  is  substituted  by  the  act 
of  the  person  on  whose  life  the  certificate  is  issued  is  not  an  assignee  of 
the  certificate.     Shuman  v.  Supreme  K.  of  H.,  110-480. 

Where  the  right  to  change  the  beneficiary  is  specifically  provided  for  in 
the  certificate,  and  the  manner  of  doing  so  is  pointed  out,  the  method 
indicated  must  be  adopted  and  if  that  method  involves  the  issuance  of  a 
new  certificate,  the  endorsement  of  a  certificate  without  the  observance  of 
the  formalities  required  will  not  give  the  endorsee  a  right  to  the  proceeds 
as  against  the  beneficiaries  designated  by  the  certificate  itself.  Shuman 
V.  A.  0.   U.  W.,  110-642. 

Where  the  benefit  was  made  payable  to  the  wife  of  the  deceased,  who 
was  disqualified  to  collect  it  on  account  of  having  feloniously  caused  the 
death  of  her  husband,  held  that  her  heirs  had  no  interest  in  the  benefit 
fund,  but  that  the  amount  payable  was  held  in  trust  by  the  association 
for  the  estate  of  the  deceased.     Sehmidt  v.  Northern  Life  Assn.,  112-41. 

The  beneficiary  named  in  such  a  certificate  has  no  property  right 
therein,  but  only  an  expectancy.  If  a  beneficiary  is  designated  who  does 
not  belong  to  the  class  of  persons  enumerated  by  statute,  the  insurance 
becomes  payable  to  those  who  would  have  been  entitled  to  it  in  the 
absence  of  any  designation.    Ibid. 

Where  the  parties  have  agreed  upon  a  mode  by  which  a  change  of  bene- 
ficiary may  be  effected,  the  change  can  be  made  in  that  mode  only,  unle.'^c:; 
by  subsequent  agreement,  assented  to  by  the  association,  a  different  mode 
is  substituted.     Modern  Woodmen  v.  Little,  114-109. 

The  beneficiary  in  a  fraternal  or  mutual  benefit  association  has  no  vest- 
ed interest,  but  is  subject  to  provisions  as  to  changing  beneficiaries  and 
when  the  member  has  done  all  in  his  power  to  effect  the  change  and  entitle 
him  to  a  new  certificate  in  favor  of  the  proposed  beneficiary  equity  will 
carry  out  his  purpose,  although  the  actual  issuance  and  acceptance  of  tlie 
new  certificate  were  prevented  by  the  death  of  the  member.  WandeV  v. 
Ml/Stic   Toilers,   130-639. 

And  it  seems  that  if  by  action  of  the  local  officer  the  member  is  misled 
as  to  the  steps  necessary  to  be  taken,  the  association  will  be  estopped  to 
question  the  sufficiency  of  the  change.     Ibid. 

This  section  applies  to  foreign  as  well  as  domestic  companies.  Belknap 
V.  Johnston.  114-265. 

Where  the  certificate  is  a  contract  of  insurance,  made  in  another  state, 
and  change  of  beneficiary  is  made  and  completed  in  that  state,  according 
to  its  laws,  it  will  be  valid.     Ibid. 

The  right  to  change  beneficiary  existing  in  such  other  state  at  the  time 
the  contract  was  made  cannot  be  affected  by  subsequent  legislation  of 
such  state.    Ibid. 

Where  it  was  provided  that  the  certificate  should  not  be  assignal)le  in 
payment  of  or  security  for  any  debt,  held,  that  the  assignment  thereof  as  a 
security  was  invalid  and  the  creditor  acquired  no  rights  thereunder, 
Crocker  v.  Ilogin,  103-243. 

Until  the  beneficiary  is  changed  by  law,  he  has  an  actual,  subsisting  in- 
terest in  the  policy  which  will  pass  to  his  administrator  in  case  of  his 
death,  and  as  against  such  beneficiary,  or  his  administrator,  suicide  on  the 
part  of  the  insured  is  not  a  defense  in  the  absence  of  a  provision  to  that 
effect  in  the  policy.  But  fraud,  in  procuring  a  policy  with  the  intent  to 
commit  suicide,  will  vitiate  the  entire  contract,  and  defeat  recovery. 
Parker  v.  Des  Moines  Life  A.v.sn.,  108-117. 

Under  an  ordinary  life  policy  the  beneficiary  has  a  vested  right  which 
cannot  be  impaired  without  his  consent,    Haerter  v.  Mohr,  114-636. 

In  an  action  against  a  mutual  benefit  company  by  one  claiming  under  a 


Ch.  7,  T.  IX  ASSESSMENT  ASSOCIATIONS  87 

certificate  as  wife  of  the  insured,  the  company  defending  on  the  ground 
that  insured  had  a'  prior  wife  living,  and  that  plaintiff  was  not,  therefore, 
entitled  to  the  benefit,  has  the  burden  of  showing  that  a  prior  marriage 
existed,  and  had  not  been  dissolved.    Parsons  v.  A.  0.  U.  W.,  108-6. 

A  "relative"  for  whose  benefit  a  certificate  may  be  taken  includes  a  step- 
father, after  the  death  of  the  wife,  on  whom  the  relationship  depends. 
Simcoke  v.  Grand  Lodge  A.  O.  U.  W.,  84-383. 

The  provisions  that  the  beneficiary  may,  by  the  consent  of  the  society, 
be  changed  without  the  consent  of  the  person  who  has  been  such  benefi- 
ciary, is  in  accordance  with  the  law  previously  existing  with  reference  to 
the  effect  of  such  certificates.  Broivn  v.  Grand  Lodge  A.  0.  U.  W.,  80-287; 
Carpenter  v.  Knairp,  101-712. 

The  provisions  of  §  1741,  requiring  the  application  of  the  assured  to  be 
indorsed  on  or  attached  to  the  policy,  applies  to  all  policies  and  contracts 
for  life  insurance,  including  those  of  mutual  benefit  associations  issued 
upon  the  assessment  plan,  McConnell  v.  Iowa  Mut.  Aid  Assn.,  79-757; 
Grimes  v.  Northwestern  Legion  of  Honor.  And  see  now  §§  1819,  1826; 
97-315. 

Where  it  was  provided  in  the  certificate  of  a  mutual  benefit  society  that 
it  should  be  void  in  case  the  beneficiary  named  was  not  a  natural  heir  of 
the  member  taking  the  certificate,  held,  that  knowledge  on  the  part  of  the 
society  that  the  beneficiary  named  was  not  an  heir  of  the  member  taking 
the  certificate  without  objection  on  the  part  of  the  society,  and  continuing 
to  collect  assessments,  and  continuing  to  treat  the  certificate  as  valid, 
constituted  a  waiver  of  such  condition.  (Decided  prior  to  the  enactment 
of  these  provisions).     Lindscy  v.  Western  Mut.  Aid.  aS'oc,   84-734. 

Also  held,  that  where  such  certificate  was  forfeited  for  non-payment  of 
dues  after  the  taking  effect  of  the  statute,  but  payment  was  subsequently 
accepted  by  the  company,  and  the  member  was  restored,  such  restoration 
did  not  amount  to  the  making  of  a  new  contract,  but  was  a  waiver  of  the 
forfeiture,  and  the  former  certificate  continued  in  force.    Ihid. 

Also  held,  that  statements  of  the  member  with  reference  to  good  health, 
on  which  such  restoration  was  made,  were  not  false  in  such  sense  as  to 
render  such  restoration  void.    Ihid. 

Upon  the  surrender  of  a  certificate  for  the  purpose  of  changing  benefi- 
ciaries the  company  is  not  permitted  to  alter,  add  to  or  take  from  other 
conditions  of  the  contract  in  the  new  certificate  and  thereby  bind  the  in- 
sured without  his  assent.     Wood  v.  BrotlierJiood  of  Am.  Yeomen,  148-^0. 

In  the  absence  of  any  provision  for  notice  to  the  company  of  a  change  of 
l)eneficiary,  such  change  may  be  made  by  provision  in  a  will.  Brinsmaid  v. 
Iowa  State  Trav.  Men's  Assn.,  152-134. 

,  Until  the  beneficiary  is  changed  by  law,  he  has  an  actual,  subsisting  in- 
terest in  the  policy  which  will  pass  to  his  administrator  in  case  of  his 
death,  and  as  against  such  beneficiary,  or  his  administrator,  suicide  on  the 
part  of  the  insured  is  not  a  defense  in  the  absence  of  a  provision  to  that 
effect  in  the  policy.  But  fraud,  in  procuring  a  policy  with  the  intent  to 
commit  suicide,  will  vitiate  the  entire  contract  and  defeat  recovery. 
Parker  i\  Des  Moines  Life  Assn.,  108-117. 

If  under  the  terms  of  the  contract  the  benefit  is  payable  to  some  extent 
and  under  some  conditions  to  a  beneficiary  within  the  description  of  the 
statute,  the  naming  of  a  beneficiary  not  authorized  by  statute  to  receive 
the  benefit  under  certain  conditions  does  not  render  the  contract  invalid 
and  the  recovery  of  the  benefit  may  be  had  by  the  beneficiary  coming  within 
the  statutory  provisions.  OTiphant  v.  Avieriean  Health  t(-  Aec.  Assn.,  147- 
656. 

The  beneficiary  named  in  a  certificate  of  a  fraternal  beneficiary  associa- 
tion has  no  vested  interest  during  the  life  of  the  member;  but  on  the 
death  of  such  member  the  person  who,  under  the  terms  of  the  contract 
with  the  association,  is  then  entitled  to  receive  the  benefitij  provided  for  in 


88  ASSESSMENT  ASSOCIATIONS  Ch.  7,  T.  IX 

the  certificate  does  acquire  a  vested  interest  therein.  Holden  v.  Modern 
Brotherhood,  151-673. 

The  effort  of  a  member  to  change  a  beneficiary  which  is  not  made  in  ac- 
cordance with  the  rules  of  the  association  regulating  the  manner  in  which 
such  changes  may  be  made,  is  ineffectual.  But  to  this  rule  there  are  some 
well  defined  exceptions,  as  where  the  society  has  waived  compliance  or 
estopped  itself  to  assert  noncompliance;  where  it  is  beyond  the  power  of 
the  member  to  comply  literally  with  the  regulations;  or  if  the  insured  has 
pursued  the  course  pointed  out  in  the  by-laws  and  has  done  all  in  his 
power  to  change  the  beneficiary,  but  before  the  new  certificate  actually 
issues  he  dies.     IMd. 

When  a  benefit  society  pays  the  money  into  court  upon  one  of  its  cer- 
tificates, it  waives  all  mere  technical  defenses  which  it  might  have  set  up 
against  either  claimant  and  leaves  the  court  free  to  award  the  fund  upon 
equitable  principles  and  the  court  will  then  determine  as  to  which  of  the 
two  rival  claimants  is,  in  equity,  entitled  to  the  fund.     IMd. 

Sec.  1790.  (C.  C.  5514).  Report  to  commissioner  of  insurance 
— examination.  The  annual  business  of  such  association  organ- 
ized under  the  laws  of  this  state  shall  close  on  the  thirty-first  day 
of  December  of  each  j^ear,  and  it  shall  Avithin  sixty  days  there- 
after prepare  and  file  in  the  office  of  the  commissioner  of  insur- 
ance a  detailed  statement,  verified  by  its  president  and  secre- 
tary, giving  its  assets,  liabilities,  receipts  from  each  assessment 
and  all  other  sources,  expenditures,  salaries  of  officers,  number 
of  contributing  members,  death  losses  paid  and  amount  paid  on 
each,  death  losses  reported  but  not  Daid,  and  furnish  such  other 
information  as  the  commissioner  of  insurance,  who  shall  i)rovide 
blanks  for  that  purpose,  may  require  so  that  its  true  financial 
condition  may  be  shown,  and  shall  pay,  upon  filing  each  annual 
statement,  the  sum  of  three  dollars  and  such  other  fees  as  are 
required  by  the  provisions  of  section  1818  of  the  code.  He  sliall 
publish  such  annual  statement  in  detail  in  his  report,  and  for  the 
p^irpose  of  verifjang  it  he  may  make  or  cause  to  be  made  an  ex- 
amination of  the  at¥airs  of  any,  such  association  at  its  expense, 
Avhich  shall  be,  if  done  by  him  or  his  clerk,  necessary  hotel  and 
traveling  expenses  only,  if  by  a  person  not  regularly  employed  in 
his  office,  the  actual  cost  thereof,  not  exceeding  ten  dollars  ptT 
day  for  the  time  required  and  actual  expeiises;  but  the  examina- 
tion herein  provided  for  shall  be  in  addition  to  those  autliorized 
by  the  provisions  of  section  1821-a,  supplement  to  the  code,  1913. 
If  the  commissioner  regards  it  necessary  for  the  safety  of  the 
funds  of  the  association,  he  maj^  require  the  bonds  of  the  officers 
to  be  increased  to  an  amount  not  exceeding  double  the  sum  for 
which  they  are  accountable,  and  he  may  also  recjuire  supple- 
mental reports  from  such  association  at  such  time  and  in  such 
form  as  he  may  direct,  and  it  shall  be  the  duty  of  its  officers  to 
furnish  the  bonds  and  reports  when  thus  required.  [38  0.  A.> 
ch.  348,  §  9  and  10;  21  G.  A.,  ch.  65,  §  8.1  - 

Sec.  1791.     (C.  C.  5515).    Investment  of  accumulations.     Any 

association  accumulating  any  moneys  to  be  held  in  trust  for  the 


Ch.  7,  T.  IX  ASSESSMENT  ASSOCIATIONS  89 

purpose  of  the  fulfillment  of  its  polic}^  or  certificate,  contract,  or 
otherwise,  shall  invest  such  accumulations  in  the  securities  pro- 
vided in  section  eighteen  hundred  and  six,  chapter  eight,  of  thigj 
title,  and  deposit  the  same  with  the  commissioner  of  insurance,  as 
therein  i^rovided.  But  such  association  may  invest  in  real  estate 
in  Iowa  such  a  portion  of  said  accumulation  as  is  necessary  for 
its  accommodation  in  the  transaction  of  its  business  to  be  owned 
by  said  association,  and  in  the  erection  of  any  building  for  such 
purpose  may  add  thereto  rooms  for  rental.  [21  G.  A.,  ch.  65,  §  9.] 
Life  1778.     Applicable  1806-7.     Fraternal  Societies  18H9-1. 

Sec.  1792.  (C.  C.  5516).  Change  of  securities.  Such  associa- 
tion may  at  any  time  change  its  securities  on  deposit  by  substitut- 
ing a  like  amount  in  other  securities  of  the  same  character,  and 
the  commissioner  of  insurance  shall  permit  a  withdrawal  of  the 
same,  upon  satisfactory  proof  in  writing  filed  with  him  that  they 
are  to  be  used  for  the  purpose  for  which  they  were  originally 
deposited.       [Same,  §§  10,  11.] 

Sec.  1793.  (0.  C.  5517).  Collection  of  interest.  The  commis- 
sioner of  insurance  shall  permit  the  associations  owning  the  bonds 
or  other  securities  to  collect  and  retain  the  interest  accruing 
thereon,  delivering  to  them  the  evidences  of  interest  as  the  same 
become  due;  but  on  default  of  any  association  to  make  or  enforce 
such  collection,  he  may  collect  the  same  and  add  it  to  the  securi- 
ties in  his  possession,  less  the  expense  thereof.     [Same,  §  12. J 

Sec.  1794.  (C.  C.  5518).  Foreign  companies.  Any  association 
organized  under  tlie  laws  of  any  other  state  to  carry  on  the  busi- 
ness of  insurijig  tlio  lives  of  persons,  or  of  furnisliiiig  lienefils 
to  tlie  widows,  orphans,  heirs  or  legatees  of  deceased  members, 
or  of  paying  accident  indemnity,  or  surrender  value  of  certifi- 
cates of  insurance,  upon  the  stipulated  premium  plan  or  assess- 
ment plan,  may  be  permitted  to  do  business  in  tlie  state  by 
complying  with  the  requirements  hereinafter  made,  but  not  other- 
wise. It  shall  file  with  the  commissioner  of  insurance  a  copy  of 
its  charter  or  articles  of  incorporation,  duly  certified  by  tlie 
proper  officers  of  the  state  wherein  it  was  organized,  together 
with  a  copy  of  its  by-laws,  application  and  policy  or  certificate  of 
membership.  It  shall  also  file  with  the  commissioner  of  insurance 
a  statement,  signed  and  A-erified  by  its  pi-esident  and  seci-etary, 
which  shall  show  the  name  and  location  of  the  association,  its 
principal  place  of  business,  the  names  of  its  president,  secretary 
and  other  princij^al  officers,  the  number  of  certificates  or  policies 
in  force,  the  aggregate  amount  insured  thereby,  the.  amount  paid 
to  beneficiaries  in  the  event  of  (h^ath  or  accident,  the  amount  paid 
on  the  last  death  loss  and  the  date  thereof,  the  amount  of  cash  or 
other  assets  owned  by  the  association  and  how  invested,  and 
any    other   information    w  liich    Mic    coiniiiissioncr     may     require. 


90  ASSESSMENT  ASSOCIATIONS  Ch.  7,  T.  IX 

The  statement,  papers  and  proofs  thus  filed  shall  show  that  the 
death  loss  or  surrender  value  of  the  certificate  of  insurance  or 
accident  indemnity  is  in  the  main  provided  for  by  assessments 
upon  or  contributions  by  surviving  members  of  such  association, 
and  that  it  is  legally  organized,  honestly  managed,  and  that  an 
ordinary  assessment  upon  its  members  of  other  regular  contribu- 
tions to  its  mortuary  fund  are  sufficient  to  pay  its  maximum  cer- 
tificate to  the  full  limit  named  therein.  Upon  its  complying 
with  the  provisions  of  this  section,  and  of  section  eighteen  hun- 
dred and  eight,  chapter  eight,  of  this  title,  and  the  payment  of 
twenty-five  dollars,  the  commissioner  shall  issue  to  it  a  certifi- 
cate of  authority  to  do  business  in  this  state,  provided  the  same 
right  is  extended  by  the  state  in  which  said  association  is  organ- 
ized to  associations  of  the  same  class  in  this  state.  When  the 
commissioner  doubts,  the  solvency  of  any  foreign  association,  and 
the  falure  to  pay  the  full  limit  named  in  its  certificate  or  policy 
shall  be  such  evidence  of  insolvency  as  to  require  the  commis- 
sioner to  investigate  it,  he  shall  for  this  or  other  good  cause,  at 
the  expense  of  such  association,  cause  an  examination  of  its  books, 
papers  and  business  to  be  made,  and  if  upon  such  examination  he 
finds  that  the  association  is  not  financially  sound,  or  is  not  pay- 
ing its  policies  or  certificates  in  full,  or  is  conducting  its  business 
'fraudulently,  or  if  it  shall  fail  to  make  the  statement  required  by 
law,  he  may  revoke  its  authority  and  prohibit  it  from  doing  busi- 
ness until  it  shall  again  comply  with  the  provisions  of  this 
chapter.  If  the  commissioner  appoints  some  one  not  receiving 
a  regular  salary  in  his  office  to  make  this  examination,  such 
examiner  shall  receive  ten  dollars  per  day  for  his  services  in 
addition  to  his  actual  traveling  and  hotel  expenses,  to  be  paid  by 
the  association  examined,  or  by  the  state  on  the  approval  of  the 
executive  council,  if  the  association  fails  to  pay  the  same.  The 
provisions  of  this  section  shall  apply  to  fraternal  beneficiary 
associations  doing  exclusively  an  accident  insurance  business,  and 
upon  compliance  Avith  the  provisions  of  this  chapter,  and  the 
provisions  of  chapter  eight  of  title  nine  of  the  code,  so  far  as 
the  same  are  applicable,  such  associations  may  be  authorized  to 
transact  business  within  this  state.  [39  0.  A.",  ch.  58,  ^  2;  32  G. 
A.,  ch.  82;  21  G.  A.,  ch.  65,  §  13.] 

Sec.  1795.     (C.  C.  5519).     Proceedings  to  control  or  wind  up 

AVhen  any  association  organized  under  tliis  title  and  chapter  fails 
to  make  its  annual  statement  on  or  before  the  first  day  of  March, 
or  is  conducting  its  busiiu^ss  frauduU'ntly  or  not  in  compliance 
with  law,  or  is  not  carrjdng  out  its  contracts  with  its  members  in 
good  faith,  the  commissioner  of  insurance  shall  promptly  com- 
municate the  fad  lo  1lie  attorney  general,  who  sliall  at  once  com- 
mence action  bororc  tJie  dislricl  court  of  the  county  in  wliich 
such    association   has   ils   ])riiici|)al    |)lac(^   of  business,    giving    it 


Ch.7,  T.  rX  ASSESSMENT   ASSOCIATIONS  91 

reasonable  notice  thereof,  and  if  upon  a  hearing  it  is  found  to  h^ 
advantageous  to  the  liolders  of  certificates  of  membership  therein, 
said  court  or  judge  may  remove  any  ofHcer  or  officers,  nnd  appoint 
others  in  tlieir  ])lac(;  until  the  next  annual  election.  If  it  is  ad- 
vantageous to  tlie  holders  of  certificates  that  the  affairs  of  said 
cor])oration  be  wound  up,  the  court  or  judge  shall  so  direct,  and 
for  that  purpose  ma}'  appoint  a  receiver  who  shall  treat  all  legal 
claims  for  death  benefits  as  preferred.  The  receiver  may  also, 
with  the  approval  of  the  court,  or  judge,  transfer  the  members 
of  such  association  who  consent  thereto  to  some  like  solvent 
association  of  the  state,  or  divide  the  surplus  accumulated  in 
nroportion  to  the  share  due  each  certificate  at  the  time.  [21  (J. 
A.,  ch.  (i'^,  §16.1 

Other  than   Life   1731.     Life   1777,   1821g.     Fraternals   1836. 

The  fact  that  a  mutual  benefit  association  is  doing  business  without  com- 
plying with  the  law  cannot  be  taken  advantage  of  in  an  action  against  it 
by  another  association  to  restrain  the  use  by  defendant  Ol  a  name  common 
to  the  two,  it  appearing  that  plaintiff  has  no  prior  right  to  the  use  of  such 
name.     Grand  Lofl{/e  v.  Graham.,  96-592. 

See.  1796.  (C.  C.  5520).  Certificate  of  Authority.  Upon  com 
plinnce  witli  tlie  ])r()visi()ns  of  tliis  cliapter  by  an  association,  the 
coiinnissioner  of  insurance  shall  issue  to  it  a  certificate,  setting 
forth  that  it  has  full.v  complied  with  the  provisions  of  this  chapter, 
and  is  authoi-ized  to  transact  business  for  a  period  of  one  year 
from  April  first  of  the  vefir  of  its  issue.  [87  (J.  A.,  ch.  227;  21 
Ci.  A.,  ch.  (if),  §  18.1 

8ec.  1797.     (C.  C.  5521).     Distribution  of  surplus — surrender 

value.  Any  association  which  provides  in  the  main  for  the  pay- 
ment of  death  losses  or  accident  indemnity  by  assessments  upon 
its  members,  or  stipulated  premium  plan,  may  provide  for  the 
equitable  distribution  of  any  surplus  or  advance  insurance  fund 
accumulated  in  the  course  of  its  business,  which  may  be  paid  in 
cash  or  applied  in  the  reduction  or  payment  of  future  premiums, 
paid  up  or  extended  insurance,  as  its  rules  or  contracts  mav 
provide,  and  for  an  equitable  surrender  value  upon  the  cancel- 
lation of  a  certificate  or  policy,  provided  the  terms  and  conditions 
thereof  are  set  forth  in  such  policy  or  certificate  of  membership, 
and  such  surrender  value  shall  in  the  main  be  accumulated  during 
the  term  of  such  policy  or  certificate.     |  21  (1.  A.,  ch.  Oo,  §  20.1 

Since  the  enactment  of  this  provision  a  mutual  life  company  has  no 
authoi'ity  to  stipulate  in  its  policies  that  an  assessment  shall  be  made  for 
the  purpose  of  paying  an  endowment.  Dishnng  v.  Iowa  Life  tt  Endowment 
Assn.,  92-163. 

And  where  prior  to  the  passage  of  this  statute  endowment  contracts  had 
been  made  by  such  a  company,  and  the  risks  of  such  company  were  after- 
ward reinsured  in  another  mutual  company,  which  issued  a  different  pol- 
icy, held,  that  the  second  company  was  under  no  obligation  to  make  an 
assessment  for  the  payment  of  such  endowment.     Ibid. 


92  ASSESSMENT  ASSOCIATIONS  Cli.  7,  T.  IX 


Sec.  1798,  (C.  C.  5522).  Benevolent  societies — process. 
Nothing  in  this  chapter  shall  be  constrned  to  applj"  to  any  associa- 
tion organized  solely  for  benevolent  purposes  and  composed 
wholl}^  ol*  nieml)ers  of  any  one  occupation,  guild,  profession  or 
religious  denomination,  but  any  such  society  may,  by  complj^ng 
with  the  provisons  hereof,  become  entitled  to  all  the  privileges 
thereof,  in  which  event  it  shall  Ix^  amenable  1o  the  provisions 
of  this  chapter  so  far  as  they  are  applicable ;  jDrovided  that  if 
organized  under  the  laws  of  another  state  or  country,  they  shall 
file  with  the  commissioner  of  insurance  an  agreement  in  writing 
authorizing  service  or  notice  of  process  to  be  made  upon  tlie  said 
commissioner  of  insurance,  and  when  so  made  shall  be  as  valid 
and  binding  as  if  served  upon  the  association  witliin  this  state. 
[34  (1.  A.,  ch.  IS,  §  If);  21  G.  A.,  ch.  05,  §  21.] 

A  mutual  assessment  company  providing  for  benefits  to  its  members  in 
case  of  death  or  accident  is  not  an  association  organized  solely  for  benevo- 
lent purposes  within  the  provisions  of  this  section.  ConnvAl  v.  Iowa  t^lcttc 
Trav.  Men's  Assn.,  139-444. 

Sec.  1798-a.  (C.  C.  5523).  Future  organization  or  authoriza- 
tion prohibited — valuation  of  policies  of  existing  associations.    No 

life,  health  or  accident  insurance  company  or  association,  other 
than  fraternal  beneficiary  associations,  Avhich  issues  contracts,  the 
performance  of  which  is  contingent  upon  the  payment  of  assess- 
ments of  call  made  upon  its  members,  shall  do  business  within 
this  state  except  such  companies  or  associations  as  are  now 
authorized  to  do  business  within  this  state  and  which,  if  a  life 
insurance  company  or  association,  shall  value  their  assessment 
policies  or  certificates  of  membership  as  yearly  renewable  term 
policies  according  to  the  standard  of  valuation  ot  life  insurance 
policies  prescribed  by  the  laws  of  this  state;  provided,  however, 
that  the  insurance  commissioner  of  this  state  may  authorize  any 
health  or  accident  insurance  company  or  association  organized 
under  the  laws  of  any  other  state  or  territor}^,  to  do  business  in 
this  state,  if,  under  the  laws  of  such  state  or  territory  health  and 
accident  insurance  companies  or  associations  organized  under 
the  laws  of  this  state  are  permitted  to  do  business  in  such  state. 
The  provisions  of  this  section  shall  not  applj^  to  unincorporated 
assessment  associations  now  existing  in  this  state,  and  having 
policy  holders  or  certificates  of  membership  numbering  not  less 
than  two  hundred  fifty,  and  which  were  organized  or  in  existence 
in  this  state  as  such  unincorporated  assessment  associations  prior 
to  March  23,  1907 ;  but  any  such  unincorporated  assessment 
associations  now  existing  in  this  state,  having  policy  holders  or 
certificates  of  membership  numbering  not  less  than  two  hundred 
fifty  and  which  were  organized  or  in  existence  in  this  state  prior 
to  March  23,  1907,  ma}^  by  becoming  hereafter  incorporated  in 
this  state,  and  complying  with  the  provisions  of  this  chapter,  be- 


Ch.  8,  T.  IX  LIFE  COMPANIES  AND  ASSOCIATIONS  93 

come  entitled  to  all  o\'  llie  privileges  hereof,  in  winch  event  it 
shall  become  amenable  to  the  provisions  of  this  chapter  as  far  as 
they  are  applicable.     [37  G.  A.,  ch.  413,  §  1 ;  ch.  234;  34  CI.  A.,  ch. 

18,  §  16;  ch.  83  §  1.] 

Sec.  1798-b.  (C.  C.  5524).  Reincorporation  as  legal  reserve 
company — stock  company.  Any  existing  domestic  assessment 
company  or  association  or  fraternal  beneficiary  society  may,  with 
the  written  consent  of  the  commissioner  of  insurance,  upon  a 
majority  vote  of  its  trustees  or  directors,  amend  its  articles  of 
incorporation  and  by-laws  in  such  a  manner  as  to  transform 
itself  into  a  legal  reserve  or  level  premium  company,  and  upon  so 
doing  and  upon  procuring  from  the  commissioner  of  insurance  a 
certificate  of  authority,  as  prescribed  by  law,  to  transact  business 
in  this  state  as  a  legal  reserve  or  level  premium  company,  shall 
incur  the  obligations  and  enjoy  the  benefits  thereof,  the  same 
as  though  originally  thus  incorporated,  and  such  corporation 
under  its  charter  as  thus  amended,  shall  be  a  continuation  of  sucli 
original  corporation,  and  the  officers  thereof  shall  serve  through 
their  respective  terms  as  provided  in  the  original  charter,  but 
their  successors  shall  be  elected  and  serve  as  in  such  amended 
articles  provided;  but  such  amendment  or  reincorporation  shall 
not  affect  existing  suits,  rights  or  contracts. 

Any  assessment  company  or  fraternal  beneficiary  society  rein- 
corporated to  transact  life  insurance  business,  shall  value  its 
assessment  policies  or  certificates  or  benefit  certificates  as  yearly 
renewable  term  policies  according  to  the  standard  of  valuation  of 
life  insurance  policies  prescribed  by  the  laws  of  this  state. 

Provided  that  accident  or  health  associations  may  take  ad- 
vantage of  all  the  provisions  of  this  section,  in  so  far  as  appli- 
cable, and  may  thereupon  transform  themselves  into  stock  com- 
panies. But  no  such  company  or  association  shall  reorganize 
under  the  provisions  of  tliis  section  unless  it  shall  have  accumu- 
lated sufficient  surplus  to  constitute  a  reinsurance  reserve  equal 
to  the  unearned  premium  on  all  outstanding  policies  or  certifi- 
cates, as  prescribed  by  the  statutes  of  this  state  relating  thereto. 
[36  G.  A.,  S.  F.  492,  §  1 ;  34  G.  A.,  ch.  18,  §  17;  32  G.  A.,  ch. 
83,  §  2.] 

CITAPTER  8,  TITLE  TX,  C^ODE. 

PROVISIONS    APPLYING    TO    LIFE    INSURANCE    COMPANIES    AND 

ASSOCIATIONS. 

Sec.  1799.  (C.  C.  5525).  Annual  statement.  Every  company 
or  association  organized  inuh'r  tlie  laws  of  any  otlier  state  or 
country  and  doing  Inisiiiess  in  this  state  shall  annually,  by  the 
first  day  of  March,  file  with   the  commissioner  of  insurance  a 

7 


94  LIFE  COMPANIES  AND  ASSOCIATIONS         Ch.  S,  T.  IX 

statement  of  its  affairs  for  the  year  terminating  on  the  thirt}'- 
first  day  of  December  preceding,  in  the  same  manner  and  form 
provided  for  similar  companies  or  associations  organized  in  this 
state.  Tlie  commissioner  ma}^  amend  the  form  of  the  annual 
statement  required  to  be  made  by  companies  or  associations 
doing  business  in  this  state,  and  propose  and  require  such  ad- 
ditional matter  to  be  covered  therein  as  he  may  think  necessary 
to  elicit  a  full  exhibit  of  the  standing  of  any  such  company  oi 
association.     [15  G.  A.,  ch.  2,  §  1;  C.  73,  §  1166.] 

See  1773.     Praternals  1830-36.     Other  than  Life  1714-16. 

8ec.  1800  (C.  C.  5526).  Ag3nt's  certificate.  No  ])erson  shall, 
directly  or  indirectly,  act  within  this  state  as  agent,  or  otherwise, 
in  receiving  or  procuring  applications  for  insurance,  or  in  doing 
or  transacting  any  kind  of  life  insurance  l)usiness,  for  any  com- 
pany or  association  contemplated  in  tlie  \\vo  chapters  preceding, 
except  for  the  purpose  of  taking  applications  for  organizations, 
unless  the  compan}'-  or  association  for  wliich  he  is  acting  has  re- 
ceived a  certificate  from  the  commissioner  of  insurance. authoriz- 
ing it  to  transact  business  therein,  nor  until  he  shall  have  received 
from  said  commissioner  a  certificate  showing  that  such  comj^aiiy 
or  association  lias  complied  with  the  provisons  of  law,  and  that 
such  person  is  authorized  to  act  for  it     [Same.] 

See  1814-15-21k,  1.    Fraternal  1883-37.    Other  than  Life  1725-49-50. 

Sec.  1801  (C.  C.  5527).  Penalty  for  acting  without  certifi- 
cate. Any  such  compan}''  or  association  that  does  or  solicits  new 
business  without  the  certificates  required  b}^  the  two  preceding 
chapters  shall  forfeit  five  hundred  dollars  for  every  day's  neglect 
to  j:)rocure  the  same.  Any  person  knowingly  soliciting  applica- 
tions or  making  insurance  for  any  company  or  association  having 
no  such  certificate  from  the  commissioner  of  insurance  as  required, 
shall  forfeit  and  paj"  the  sum  of  three  hundred  dollars,  and  any 
person  acting  for  an}^  company  or  association  authorized  to  trans- 
act business  without  having  the  agent's  certificate  prescribed 
in  the  preceding  section  in  his  possession,  shall  be  liable  to  pay 
twenty-five  dollars  for  each  day's  neglect  to  procure  the  same 
during  the  time  he  thus  acts.     [15  G.  A.,  ch.  2,  §  5 ;  C.  '73,  §  1177.] 

See  1814-15-21k,  1.     Fraternal  1833-37.     Other  than  Life  1725-49-50. 

Sec.  1802  (C.  0.  5528).  Recovery  of  penalties.  Actions 
brought  to  recover  any  of  the  penalities  provided  for  in  this* 
chapter  shall  be  instituted  in  the  name  of  the  state  b.y  the  county 
attorney  of  the  county,  under  the  direction  and  authority  of 
the  commissioner  of  insurance,  and  may  be  brought  in  the  dis- 
trict court  of  any  county  in  which  the  company  or  association 
proceeded  against  is  engaged  in  the  transaction  of  business,  or 
in  Avhich  the  offending  person  resides,  if  it  is  against  him.     Thb 


Ch.  8,  T.  IX  LIFE  COMPANIES  AND  ASSOCIATIONS  95 

penalties,  when  recovered,  shall  be  paid  into  the  state  treasury 
for  the  use  of  the  school  fund.  [15  G.  A.,  ch.  2,  §  6;  C.  73,  §  1178.J 
Sec.  1803  (C.  C.  5529).  Real  Estate.  No  such  company  or 
association  organized  under  the  laws  of  this  state  shall  purchase, 
hold  or  convey  real  estate,  except  for  the  purposes  and  in  the 
manner  herein  set  forth : 

1.  Such  as  is  required  for  its  use  in  the  transaction  cC  its  business; 

2.  Such  as  shall  have  been  mortgaged  to  it  in  good  faith  by  way  of 
security  for  loans  previously  contracted  in  the  course  of  its  dealings; 

3.  Such  as  shall  have  been  conveyed  to  it  in  satisfaction  of  debts  previ- 
ously contracted  in  the  course  of  its  dealings; 

4.  Such  as  shall  have  been  purchased  at  sales  under  execution  issued 
upon  judgments  and  decrees  based  upon  debts  due  it,  or  obtained  by  re- 
demption as  junior  judgment  creditor  or  mortgagee.     [C.  '73,   §  1180.] 

Other  than  Life  1703.     Fraternal  1839k. 

Sec.  1804  (C.  C.  5530).  When  to  be  sold.  All  real  estate 
acquired  which  is  not  necessary  for  such  company  or  association 
in  the  convenient  transaction  of  its  business  shall  be  sold  witliin 
five  years  after  it  acquired  title  thereto,  unless  it  procures  a  cer- 
tificate from  the  commissioner  of  insurance  that  its  interests  will 
suffer  by  a  forced  sale  thereof,  in  which  event  the  time  may  be 
extended  as  the  commissioner  shall  direct  in  said  certificate. 
[C.  '73,  §  1181.] 

Sec.  1805  (C.  C.  5531).  Policy  exempt  from  execution.  A 
policy  of  insurance  on  the  life  of  an  individual,  in  the  absence  of 
an  agreement  or  assignment  to  the  contrary,  shall  inure  to  tlie 
separate  use  of  the  husband  or  wife  and  children  of  said  individ- 
ual, independently  of  his  creditors.  The  proceeds  of  an  endow- 
ment policy  payable  to  the  assured  on  attaining  a  certain  age  shall 
be  exempt  from  liability  for  any  of  his  debts.  Any  benefit  or 
indemnity  paid  uiuler  an  accident  policy  shall  be  exempt  to  the 
assured,  or  in  cas(^  of  his  denth  to  the  liusband  or  wife  and  chil- 
di'(Mi  of  the  assured,  from  his  d('l)ts.  Tlio  jivjiils  of  all  policies  ol" 
life  or  accident  insurance  payalde  to  the  snrviving  Avidow  shall 
be  exempt  from  liability  for  all  debts  of  such  beneficiary  con- 
tracted prior  to  the  death  of  the  assured,  but  the  m mount  thus 
exempted  shall  not  exceed  five  thousand  dollars.  [24  (}.  A.,  ch 
28;  18  G.  A.,  ch.  5;  C.  73,  ^  1182,  2372;  R.,  §  2362;  C.  '51, 
§  1330.] 

The  execution  of  an  ordinary  life  policy  confers  immediately  a  vested 
right  upon  and  raises  an  irrevocable  trust  in  favor  of  th(;  party  named  as 
beneficiary,  a  right  which  cannot  be  impaired  without  tlie  beneficiary's 
consent.    Haerther  v.  Mohr,  114-636. 

The  purpose  of  this  section  being  to  provide  that  the  money  derived 
from  life  or  accident  insurance  shall  enure  to  the  benefit  of  the  widow, 
exempt  from  h^r  antecedent  debts,  it  follows  that  she  may  invest  a  part 
or  the  whole  thereof  in  property  which  shall  be  necessary  for  the  com- 
fort and  support  of  her  family,  without  impairing  this  right  of  exemp- 


96  LIFE  COMPANIES  AND  ASSOCIATIONS  Ch.  8,  T.  IX 


tion.  The  exemption  is  not  limited  to  the  money  itself.  Gooh  v.  Allee, 
119-226. 

In  the  absence  of  any  contract  or  arrangement,  the  proceeds  of  life  in- 
surance are  not  exempt  in  the  hands  of  the  heir  from  the  debts  of  such 
heir.     O'Melia  v.  Hoffmeyer,   119-444. 

Where  a  bankrupt  holds  a  policy  payable  to  himself,  his  heirs  or  legal 
representatives,  the  surrender  value  thereof  will  be  a  part  of  the  assets 
of  his  estate  in  bankruptcy,  under  the  provisions  of  the  federal  bankrupt 
law.     In  re  Lauge,  91  Fed.,  361;  In  re  Steele,  98  Fed.,  78. 

The  provisions  of  the  bankrupt  law  as  to  exemption  of  policies  of  life 
insurance  are  only  applicable  to  cases  where  there  is  no  exemption  by 
the  state  law,  but  so  far  as  such  policies  are  exempt  by  the  state  law  such 
exemption  is  recognized  under  the  general  provisions  as  to  exempt  prop- 
erty.    Steele  v.  Buel,  104  Fed.,  968. 

This  section  contemplates  a  case  where  the  policy  is  payable  to  de- 
ceased, or  his  or  her  legal  representatives,  and  not  a  case  where  the  policy 
is  payable  to  another  person  for  his  use  and  benefit,  in  which  case  it  can- 
not be  otherwise  disposed  of  by  will.     McChire  v.  Johnson,  56-620. 

Where  a  decedent  left  a  wife  but  no  children,  held,  that  the  proceeds 
should  go  to  the  wife  alone,  and  not  be  divided  among  all  the  distributees 
of  his  estate.     Rhode  v.  Bank,  52-375. 

The  proceeds  of  life  insurance  are  exempt  to  heirs  generally  and  not 
merely  to  wife  and  children,  to  whom  they  are  distributed  free  from  the 
debts  of  the   deceased.     Larj'ahee  v.  Palmer,   101-132. 

The  proceeds  of  the  policy  when  realized  by  the  person  entitled  thereto, 
are  not  exempt  from  execution  for  the  debts  of  such  person.  The  exemp- 
tion exists  only  as  to  the  debts  of  the  person  insured.  Smedlep  v.  Felt, 
43-607;   Murray  v.  Wells,  53-256. 

This  section  does  not  exempt  the  avails  of  a  policy  of  insurance  from 
the  debts  of  a  beneficiary  when  such  beneficiary  is  a  person  other  than 
the  assured.     Murdy  v.  Skyles,  101-549. 

Therefore  a  benefit  payable  to  the  member  of  an  association  and  by  him 
transferred  to  his  wife  is  not  exempt  from  the  debts  of  the  wife.     IMd. 

The  exemption  to  the  wife  as  against  her  own  antecedent  debts  relates 
only  to  cases  of  death  of  the  husband  who  is  the  assured.     Ihid. 

Under  a  policy  of  insurance  for  the  use  and  benefit  of  the  wife  of  as- 
sured, the  sum  stipulated  being  payable  to  said  assured  or  her  legal  repre- 
sentatives "or  if  the  said  assured  be  not  then  living  the  said  sum  shall  be 
payable  to  her  children  or  to  their  children  if  under  age,"  held,  that  the 
wife  and  the  children  being  dead  before  the  death  of  insured  the  proceeds 
of  the  policy  were  payable  to  the  grandchildren  and  were  not  subject  to 
the  debts  of  the  deceased  wife.     In  re  Conrad's  Estate,  89-396. 

Where  a  certificate  of  insurance  in  a  mutual  benefit  company  was  made 
payable  to  the  "legal"  heirs  of  assured,  held,  that  the  widow  of  assured 
was  not  within  such  description,  but  that  the  proceeds  of  such  certificate 
should  go  to  the  children  of  deceased.  Phillips  v.  Carpenter,  79-600;  but 
see  now  §  3313. 

The  exemption  of  this  section  may  apply  to  property  purchased  with 
the  avails  of  the  insurance.     Booth  v.  Martin,  158-434. 

In  a  particular  case  held,  that  the  evidence  did  not  show  a  contract  to 
subject  the  proceeds  of  a  life  policy  to  the  payment  of  a  debt.  Herriman 
V.  McKee,  49-185. 

Where  the  proceeds  of  a  policy  of  life  insurance  are  used  to  release 
other  property  from  a  claim  under  which  it  is  held,  the  property,  so  re- 
leased becomes  subject  to  the  payment  of  debts,  Fricdlandcr  v.  Mahoncy, 
31-311. 

The  proceeds  of  a  life  policy  are  assets  of  the  estate,  and  only  differ 
from  other  assets  in  the  manner  of  their  distribution.  Kellcy  v.  Manri, 
56-625. 


Ch.  8,  T.  IX  LIFE  COMPANIES  AND  ASSOCIATIONS  97 

A  daughter,  who  is  the  beneficiary  in  a  policy  of  insurance  on  the  life 
of  her.  father,  may  make  a  valid  assignment  of  the  policy,  and  the  assignee 
need  not  have  an  insurable  interest  in  the  life  of  the  insured  or  that  of 
the  beneficiary.     Farmers'  cC  Traders'  Bank  v.  Johnson,  118-282. 

Further  as  to  disposition  of  proceeds  as  assets  of  the  estate,  see  §  3313. 

Sec.  1806  (C.  C.  5532).  Investment  of  funds.  The  funds  re- 
quired by  law  to  be  deposited  with  the  commissioner  of  insurance 
by  any  company  or  association  contemplated  in  the  two  chapters 
preceding,  and  the  funds  or  accumulations  of  any  such  company 
or  association  organized  under  the  laws  of  this  state  held  in 
trust  for  the  purpose  of  fulfilling  any  contract  in  its  policies  or 
certificates,  shall  be  invested  in  the  following  described  securities 
and  no  other: 

1.  The  bonds  of  the  United  States; 

2.  The  bonds  of  this  state  or  of  any  other  state  when  such  bonds  are 
at  or  above  par; 

3.  Bonds  or  other  evidences  of  indebtedness  of  any  county,  city,  town 
or  school  district  within  the  state  or  any  other  state,  drainage  district 
bonds  of  this  state,  improvement  certificates  issued  by  any  municipal  cor- 
poration of  this  state  such  certificates  being  a  first  lien  upon  real  estate 
within  the  corporate  limits  of  the  municipality  issuing  the  same,  where 
such  bonds  or  other  evidences  of  indebtedness  are  issued  by  authority  of 
and  according  to  law  and  bearing  interest,  and  are  approved  by  the  com- 
missioner of  insurance; 

4.  Bonds  and  mortgages  and  other  interest-bearing  securities  being 
first  liens  upon  real  estate  within  this  state  or  any  other  state  worth  at 
least  double  the  amount  loaned  thereon  and  secured  thereby  exclusive  of 
improvements,  or  two  and  one-half  times  such  amount  including  the  im- 
provements thereon,  if  such  improvements  are  constructed  of  brick  or 
stone;  but  no  such  improvements  shall  be  considered  in  estimating  the 
value  unless  the  owner  shall  contract  to  keep  the  same  insured  in  some 
reliable  fire  insurance  company  or  companies  authorized  to  do  business  in 
the  state,  during  the  life  of  the  loan,  in  a  sum  at  least  equal  to  the  excess 
of  the  loan  above  one-half  the  value  of  the  ground  exclusive  of  the  im- 
provements, the  insurance  to  be  made  payable  in  case  of  loss  to  the  com- 
pany or  association  investing  its  funds,  as  it  interests  may  appear  at  the 
time  of  loss;  provided  that  before  a  company  or  association  may  invest 
any  of  its  funds  in  such  securities  as  are  specified  in  this  subdivision  of 
this  section  in  any  state  other  than  the  state  of  Iowa  it  shall  first  obtain 
consent  of  the  commissioner  of  insurance  so  to  do;  any  mortgage  lien 
upon  real  estate  shall  not,  for  the  purposes  of  this  section,  be  held  or  con- 
strued to  be  other  than  a  first  lien  by  reason  of  the  fact  that  drainage  or 
other  improvement  assessments  may  have  been  levied  against  the  real 
estate  covered  by  said  mortgage,  whether  the  installments  of  said  assess- 
ment be  matured  or  not,  provided  that  in  determining  the  value  of  said 
real  estate  for  loan  purposes,  the  amount  of  the  drainage  or  other  assess- 
ment tax  unpaid,  shall  be  deducted. 

5.  Loans  upon  its  own  policies,  where  the  same  have  been  in  force  at 
least  two  full  years,  in  an  amount  not  exceeding  the  net  terminal  reserve. 
If  such  loan  is  made,  the  company  must  describe  in  the  note  or  contract 
taken,  the  amount  of  the  loan,  the  name  of  the  borrower,  the  number  of 
the  policy,  and  the  terms  of  such  note  or  contract  shall  make  the  amount 
loaned  a  lien  against  such  policy  and  such  note  or  contract  shall  be  num- 
bered, dated  and  signed,  giving  the  post-office  address  of  the  insured. 

6.  Any  such  real  estate  in  this  state  as  is  necessary  for  its  accom- 
modation as  a  home  office;  and  in  the  erection  of  any  building  for  such 
purposes,  it  may  add  thereto  rooms  for  rent;    provided  that  before  any 


98  LIFE  COMPANIES  AND  ASSOCIATIONS  Ch.  S,  T.  IX 


company  or  association  shall  invest  any  of  its  funds,  in  accordance  with 
the  provisions  of  this  subdivision,  it  shall  first  obtain  the  consent  of  the 
executive  council.  The  maximum  amount  which  any  such  company  or 
association  shall  be  permitted  to  invest  in  accordance  with  the  pro- 
visions of  this  subdivision  shall  not  exceed  ten  per  cent  of  the  lawful 
reserve  on  its  policies  or  certificates  of  insurance,  provided,  however, 
that  a  stock  company  may  invest  such  portion  of  its  paid  up  capital, 
in  addition  to  said  ten  per  cent  of  the  lawful  reserve  on  its  policies,  as 
is  not  held  to  constitute  a  part  of  its  legal  reserve  deposit  under  sec- 
tion seventeen  hundred  seventy-four  (1774)  of  the  code;  provided  further 
that  the  total  legal  reserve  of  such  company  shall  be  equal  to  or  exceed 
the  amount  of  its  paid  up  capital  stock.  Any  company  or  association  so 
investing  its  funds  may  use  the  value  of  any  such  real  estate  and  home 
office  building  as  a  part  of  the  deposit  of  legal  reserve  in  which  case 
it  shall  convey  the  same  to  the  commissioner  of  insurance  by  trust  deed, 
such  property  to  be  held  by  him  in  trust  for  the  benefit  of  the  policy- 
holders or  members  of  the  company  or  association.  The  commissioner 
of  insurance  shall  execute  and  deliver  to  the  company  or  association  a 
quit  claim  deed  to  the  property  held  by  him  in  trust  whenever  the  full 
legal  reserve  of  said  company  or  association  shall  be  invested  in  other 
securities  provided  in  this  subdivision  and  deposited  with  the  commis- 
sioner of  insurance.  The  value  of  said  property  whether  deeded  in  trust 
or  otherwise  shall  be  determined  from  time  to  time  by  the  commissioner 
of  insurance. 

All  such  securities  sluill  be  deposited  with  the  commissiouer, 
subject  to  his  approval,  and  shall  remain  Avith  him  until  with- 
drawn in  accordance  with  law.  Any  company  or  association  re- 
ceiving payments  or  partial  payments  on  any  securities  deposited 
with  the  commissioner  of  insurance  shall  notify  him  of  such  fact, 
giving  the  amount  and  date  of  payment,  within  thirtj^  days  after 
such  payment  shall  have  been  made.  The  officers  of  any  company 
or  association  which  fails  to  report  the  receipt  of  payments  or 
partial  payments  as  above  provided,  shall  be  liable  to  a  fine  in 
double  the  amount  collected  and  not  reported  Avithin  the  time  and 
in  the  manner  above  specified.  It  shall  be  the  duty  of  the  com- 
pany or  association  and  of  the  officers  thereof  to  withdraw  from 
deposit  any  loans  made  in  accordance  with  the  provisions  of  sub- 
division five  of  this  section  Avithin  fifteen  daj^s  after  the  date 
of  the  lapsing  or  termination  of  any  policy  of  insurance  "upon 
Avhich  any  such  loan  is  made.  Any  association  making  deposit 
with  the  commissioner  of  insurance  as  herein  contemplated,  shall 
at  the  time  of  making  request  for  the  withdrawal  of  any  securi- 
ties designate  for  Avhat  purpose  the  same  are  desired  to  be  Avith- 
draAvn.  The  commissioner  of  insurance  shall  have  authority  to 
suspend  or  revoke  the  certificate  of  authority  of  any  company  or 
association  failing  to  comply  Avith  any  of  the  provisions  of  this 
section  or  for  violatiiiii'  the  same.  [^7  CI.  A.,  cli.  404  :  86  (1.  A.,  S. 
F.  452,  §  1 ;  36  G.  A.,  H.  F.  610,  §  1 ;  36  G.  A.,  ch.  145,  ^  1 ;  31  G. 
A.,  ch.  77;  28  G.  A.,  ch.  66,  ^  1;  25  G.  A.,  ch.  33;  24  G.  A.,  ch.  30; 
21  G.  A.,  ch.  65,  §  9;  21  G.  A.,  ch.  169;  17  G.  A.,  ch.  47;  C.  '73, 
§  1179.1 

See  also  1699,  1778-91.    Fraternal  1839  1. 


Ch.  8,  T.  IX  LIFE  COMPANIES  AND  ASSOCIATIONS  99 

Sec.  1807  (C.  C.  5533).  Investment  in  land  and  buildings.  Such 
organization  may  purchase  such  real  estate  in  the  state  with  a 
portion  of  its  accumulations  as  may  be  necessary  for  its  use  in 
the  transaction  of  its  business,  and  in  the  erection  of  a  building 
thereon  for  such  purpose,  to  which  rooms  for  rent  may  be  added. 
[21  G.  A.,  ch.  65,  §  0.] 

Sec.  1808  (C.  C.  5534).  Service  of  process.  Every  life  insurance 
company  and  association  organized  under  the  laws  of  another 
state  or  country  shall,  before  receiving  a  certificate  to  do  business 
in  this  state  or  any  renewal  thereof,  file  in  the  ofQce  of  the  com- 
missioner of  insurance  an  agreement  in  writing  that  thereafter 
service  of  notice  or  process  of  any  kind  may  be  made  on  the  com- 
missioner of  insurance,  and  when  so  made  shall  be  as  valid, 
binding  and  effective  for  all  purposes  as  if  served  upon  the  com- 
pany according  to  the  laws  of  this  or  any  other  state,  and  waiving 
all  claim  or  right  of  error  by  reason  of  such  acknowledgment  of 
service.  Such  notice  or  process,  with  a  copy  thereof,  may  be 
mailed  to  the  commissioner  of  insurance  at  Des  Moines,  Iowa,  in 
a  registered  letter  addressed  to  him  by  his  official  title,  and  he 
shall  immediately  upon  its  receipt  acknowledge  service  thereon 
on  behalf  of  the  defendant  foreign  insurance  company  by  writing 
thereon,  giving  the  date  thereof,  and  shall  immediately  return 
such  notice  or  process  in  a  registered  letter  to  the  clerk  of  the 
court  in  which  the  suit  is  pending,  addressed  to  him  by  his  official 
title,  and  shall  also  forthwith  mail  such  copy,  wdth  a  copy  of  his 
acknowledgment  of  service  written  thereon,  in  a  registered  letter 
addressed  to  the  person  or  corporation  who  shall  be  named  or 
designated  by  such  company  in  such  written  instrument.  [21  G. 
A.,  ch.  65,  §  13;C.  '73,  §  1165.] 

Applicable  see  3530  Miscel.  sections.  Fraternal  1831.  Other  than  Life 
1722. 

Failure  of  non-resident  company  to  comply  with  section  1S08  of  code 
cannot  be  pled  in  its  defense  to  prove  lack  of  notice  when  notice  has  been 
served  on  Commissioner.  Companies  doing  business  in  state  presumed 
to  comply  with  law.  Flynn  v.  Western  Mutual  Life  Assn.,  171  N.  W., 
711. 

Sec.  1809  (C.  C.  5535).  Provisions  additional.  The  provisions 
of  the  preceding  section  are  merely  additions  to  the  general  provi- 
sions of  law  on  the  subjects  therein  referred  to,  and  are  not  to  be 
construed  to  be  exclusive. 

Sec.  1810  (C.  0.  5536).    Laws  of  other  states — reciprocity.    If 

by  the  laws  of  any  state,  or  the  rulings  or  decisions  of  the  appro- 
priate officers  thereof,  any  burden,  obligation,  requirement,  dis- 
qualification or  disability  is  put  upon  any  company  or  association 
of  any  class  organization  in  this  state,  effecting  its  freedom  to  do 
business  in  that  state,  then  the  same  or  like  burden,  obligations, 
requirement,  disqualification  or  disability  shall  be  put  upon  every 
such  company  or  association  of  the  same  class  from  that  state 


100  LIFE   COMPANIES  AND  ASSOCIATIONS  Cli.  8,  T.  IX 


doing  or  seeking  to  do  business  in  this  state;  and  the  commis- 
sioner of  insurance  shall  enforce  the  provisions  of  this  section, 
and  in  doing  so  may  refuse  or  revoke  the  certificate  of  such  com- 
pany or  association  of  such  other  state;  and  it  shall  be  unlawful 
for  the  commissioner  of  insurance  to  impose  upon  companies  or 
associations  organized  under  chapter  seven  of  this  title  any  rules 
or  regulations,  requirements  or  limitations,  that  shall  not  be  im- 
posed Avith  equal  force  upon  like  companies  or  associations  from 
other  states  doing  a  like  business  in  this  state.  [21  G.  A.,  ch.  65, 
§  13.] 

See  also  1821.     Other  than  Life  1736. 

Sec.  1811  (0.  C.  5537).  Defenses  to  actions  on  policies — intoxi- 
cation. In  any  action  pending  in  any  court  of  the  state  on  any 
policy  or  certificate  of  life  insurance,  wherein  the  defendant  seeks 
to  avoid  liability  upon  the  alleged  ground  of  the  intemperate 
habits  or  habitual  intoxication  of  the  assured,  it  shall  be  a  suf- 
ficient defense  for  the  plaintiff  to  show  that  such  habits  or  habit- 
ual intoxication  of  the  assured  Avas  generally  known  in  the  com- 
munity or  neighborhood  where  the  agent  of  the  defendant  resided 
or  did  business,  if  thereafter  the  company  continued  to  receive 
the  premiums  falling  due  thereon.     [16  G.  A.,  ch.  qd,  §  1.] 

This  provision  has  no  application  to  mutual  benefit  associations.  Knapi) 
V.  Brotherhood  of  Am.  Yeomen,  128-566;   s.  c.  149-137. 

If  representations  as  to  the  habits  of  an  applicant  are  knovrn  to  the 
soliciting  agent  to  be  false  the  false  statements  in  the  application  as  to 
such  habits  cannot  be  relied  upon  by  the  company  as  a  defense.  Biermann 
V.  Chiai-anty  Mut.  Life  Ins.  Co.,  142-341. 

Sec.  1812  (C.  C.  5538).     Physician's  certificate.     In  any  case 

where  the  medical  examiner,  or  physician  acting  as  such,  of  any 
life  insurance  company  or  association  doing  business  in  the  state 
shall  issue  a  certificate  of  health  or  declare  the  applicant  a  fit 
subject  for  insurance,  or  so  report  to  the  company  or  association 
or  its  agent  under  the  rules  and  regulations  of  such  company  or 
association,  it  shall  be  therebj^  estopped  from  setting  up  in  defense 
of  the  action  on  such  policy  or  certificate  that  the  assured  was 
not  in  the  condition  of  health  required  by  the  policy  at  the  time 
of  the  issuance  or  delivery  thereof,  unless  the  same  was  procured 
by  or  through  the  fraud  or  deceit  of  the  assured.     [Same,  §  2.] 

Applicable  to  Fraternals.    See  Supreme  Court  decisions. 

To  defeat  recovery  oii  account  of  false  statements  as  to  the  health  of 
the  applicant,  the  defendant  must  show,  not  only  that  the  statements  of 
the  applicant  were  false  and  fraudulent,  but  that  the  examiner  was  de- 
ceived thereby.  But  the  defendant  is  not  estopped  by  the  certificate  of  the 
medical  examiner  from  setting  up  fraud  on  the  part  of  the  applicant  in 
procuring  such  certificate  on  which  the  policy  was  issued.  Welch  v.  Union 
Central  L.  Ins.  Co.,  108-224. 

The  purpose  of  this  statutory  provision,  estopping  the  company  from 
setting  up  misrepresentations  as  to  the  health  of  deceased  where  a  medical 
examiner  has  passed  on  the  fitness  of  the  applicant,  is  to  prevent  recovery 
being  defeated  on  any  policy  where  the  company  has,  by  its  agent,  exam- 


Ch.  8,  T.  TX  LIFE  COMPANIES  AND  ASSOCIATIONS. ,  :  '       >  ■  V'>  I'Ol: 


inecl  and  passed  upon  the  fitness  of  the  applicant  for  insurance,  and  it  is 
quite  immaterial  what  representation-s  have  been  made,  or  warranties 
given.  The  fraud  or  deceit  referred  to  in  the  statute  is  that  of  procuring 
the  report  or  certificate  of  the  physician  and  not  the  policy.  Weimer  v. 
Economic  L.  Assn.,  108-451. 

Unless  the  examiner  is  deceived  by  answers  in  the  application,  or  in 
some  other  way,  the  company  is  not  entitled  to  have  the  condition  of 
health  of  the  insured  at  the  time  of  the  issuance  of  the  policy  investigated. 
In  the  absence  of  fraud  or  deceit  practiced  on  the  medical  examiner  the 
company  is  estopped  from  questioning  the  truthfulness  of  the  answers 
made  by  the  insured  in  the  application.  Stcioart  v.  Equitable  Mut.  L. 
Ins.  Assn.,   110-528. 

Under  this  section  the  company  is  estopped  from  inquiring  into  the 
correctness  of  answers  in  the  application,  in  the  absence  of  an  allegation 
that  the  medical  examiner's  report  was  procured  through  fraud  or  deceit. 
The  fact  that  the  statements  in  such  application  amount  to  warranties  is 
immaterial.    Nelson  v.  Ncderland'  L.  Ins.  Co.,  110-600. 

The  provisions  of  this  section  evidently  relate  to  procedure,  and  not  to 
the  validity  of  the  contract,  and  therefore  control  in  an  action  on  a  policy 
issued  in  another  state  by  a  foreign  insurance  company.     Ibid. 

Where  a  physician  reports  in  favor  of  the  application,  and  it  is  not 
proven  that  such  report  was  secured  by  fraud  practiced  upon  the  physi- 
cian, the  defendant  is  estopped  from  denying  the  truthfulness  of  the  ap- 
plicant's representations.    Brown  v.  Modern  Woodmen,  115-450. 

The  medical  examiner  or  physician  referred  to  in  this  section  is  the 
person  who  examines  the  applicant  and  determines  his  condition  of  health 
and  reports  whether  he  is  a  proper  risk.  Peterson  v.  Des  Moines  L.  Assn., 
115-668. 

The  provisions  of  this  section  apply  to  the  person  who  represents  the 
company  in  making  an  examination  of  applicants  as  to  their  physical  con- 
dition, and  not  to  the  action  of  the  medical  director  of  the  company  in 
determining  whether  the  risk  shall  be  accepted.  Wood  v.  Farmers'  Life 
Assn.,   121-44. 

Proof  of  the  falsity  of  the  representations  made  in  an  application  for 
life  insurance  is  not  alone  sufficient  to  establish  that  such  representations 
were  fraudulently  made.    Ley  v.  Metropolitan  L.  Ins.  Co.,  120-203. 

The  provisions  with  reference  to  the  conclusiveness  of  a  health  certifi- 
cate given  by  a  medical  examiner  have  no  application  to  mutual  benefit 
associations.     Smith  v.  Supreme  Lodge,  123-676. 

In  an  action  on  a  fraternal  benefit  certificate  evidence  of  fraud  in  the 
application  consisting  in  false  answers  as  to  the  conditions  of  the  appli- 
cant's health  is  admissible  to  defeat  recovery.     Ibid. 

To  constitute  obtaining  a  certificate  of  health,  by  an  applicant  for  life 
insurance,  by  fraud,  it  is  not  enough  that  his  answers  to  the  medical  ex- 
aminer be  untrue,  but  he  must  have  known  them  to  be  false,  and  the  ex- 
aminer must  have  been  thereby  deceived  into  issuing  the  certificate. 
Welch  V.  Union  Central  Life  Ins.  Co.,  117-394. 

Unless  the  examining  physician's  certificate  was  procured  by  fraud,  a 
company  whose  physician  certifies  that  an  applicant  is  a  fit  subject  for  in- 
surance, is  estopped  from  setting  up  the  falsity  of  assured's  warranties  as 
to  his  health  prior  to  the  medical  examination.  Broion  v.  Modern  Wood- 
men  of  America,  115-450. 

Unless  the  agent  is  purposely  misled  by  the  applicant  for  insurance,  the 
company  is  estopped  from  putting  in  issue  whether  at  the  time  of  the  is- 
sue or  delivery  of  the  certificate  he  was  a  fit  subject  for  insurance.  Roe 
V.  National  Life  Ins.  Assn.,  137-696. 

To  constitute  such  fraud  or  deceit  there  must  have  been  an  intention 
to  deceive  and  the  examiner  must  have  relied  upon  the  false  statements 
made  by  the  insured  or  have  been  misled  by  concealment  of  facts  which 
good  faith  required  him  to  disclose.     Ibid. 


'-lOi^  L^FE*;  eOTVIPANIES  AND  ASSOCIATIONS         Ch.  S,  T.  IX 


The  provisions  of  this  section  are  not  applicable  to  fraternal  benefit 
societies,  orders  or  associations.     Sargent  v.  Modern  Brotherhood,  148-600. 

Where  a  policy  of  insurance  takes  effect  from  the  time  it  is  mailed  to 
the  applicant,  the  applicant's  condition  of  health  at  that  time  is  not  open 
to  question  or  consideration  if  he  has  been  pronounced  by  the  company's 
physician  a  fit  subject  of  insurance.  Unterharnscheidt  v.  Missouri  State 
Life  Ins.   Co.,  160-223. 

Section  applied.  The  provisions  of  section  1812  of  the  Code  are 
not  applicable  to  fraternal  beneficiary  associations  organized  under  the 
provisions  of  chapter  9,  title  IX  of  the  code,  since  section  1825  of  such 
chapter  exempts  such  associations  from  the  provisions  of  the  laws  relat- 
ing to  life  insurance  companies.  Smith  v.  Supreme  Lodge  K.  t6  L.  of 
Golden  Precept,  123-676. 

8(H'.  1813  (C.  C.  5539).  Misrepresentation  of  age.  In  all  cases 
where  it  shall  appear  that  the  age  of  the  person  insured  has  been 
understated  in  the  proposal,  declaration  or  other  instrument 
upon  Avhicli  a  policy  of  life  insurance  has  been  founded 
or  issued,  then  the  amount  payable  under  the  policy  shall 
be  such  as  the  premium  paid  v/ould  have  purchased  at  the 
correct  age;  provided,  however,  that  one  who,  by  misstating'  his 
age,  obtains  life  insurance  not  otherwise  obtainable  shall  be  enti- 
tled to  recover  from  the  insurer  on  account  of  such  policy  only 
the  acere^-ate  premiums  paid.  [38  G.  A.,  ch.  348,  S  11 ;  16  G.  A., 
ch.  55,  §  3.] 

Sec.  1814  (C.  0.  5540).  iregal  business.  Any  officer,  manager 
or  agent  of  any  life  insurance  company  or  association  who,  with 
knowledge  that  it  is  doing  business  in  an  unlawful  manner  or  is 
insolvent,  solicits  insurance  with  said  company  or  associations, 
or  receives  applications  therefor,  or  does  any  other  act  or  thing 
towards  procuring  or  receiving  any  new  business  for  such  com- 
pany or  association,  shall  be  guilty  of  a  misdemeanor,  and  for 
every  such  act,  on  conviction  thereof,  shall  be  adjudged  to  pay 
a  fine  of  not  less  than  one  hundred  nor  more  than  one  thousand 
dollars,  or  be  imprisoned  in  the  county  jail  not  exceeding  one 
year,  or  be  punished  by  both  such  fine  and  imprisonment.  All 
contracts,  promises  and  agreements  made  by  any  person  to  or 
with  any  such  company  or  association  concerning  any  premium, 
policy  or  certificate  of  new  business,  after  the  revocation  of  its 
certificates  or  denial  of  authority  to  do  business,  shall  be  null  aiid 
void,  and  all  payments  of  premiums  or  assessments  advanced  or 
made  by  any  person  on  account  of  any  sucli  policy,  certifieate  of 
new  business,  or  upon  any  arrangement  therefor,  may  be  recov- 
ered from  such  company  or  association,  or  its  agent  to  whom 
payment  was  advanced  or  made,  or  from  both  of  them,  and  in  ad- 
dition thereto  plaintiff  may  recover  an  equal  amount  as  liquidated 
damages,  together  with  a  reasonable  fee  to  plaintiff's  attorney  for 
services  in  the  case. 

As  to  agents.     See  1800-1,  1821k,  1.    Fraternals  1833-37.    Other  than  Life 
1725-49-50.     Illegal  business  1821f.    Other  than  Life  1747,  1758, 


Ch.  8,  T.  TX  LIFE  COMPANIES  AND  ASSOCIATIONS  103 

Sec.  1815  (C.  C.  5541).     Advertisements— who  deemed  agent. 

The  provisions  of  sections  seventeen  hnndred  anil  forty-nine  and 
seventeen  hnndred  and  fdty  of  chapter  four,  of  this  title,  shall 
apply  to  life  insurance  companies  and  associations.  [18  G.  A.,  ch. 
211,  §§  1,  2.1 

Sec.  1816  (C.  C.  5542).  Penalty  for  fraud  in  procuring  insur- 
ance. Any  agent,  physician  or  other  person  who  shall  knowingly, 
by  means  of  concealment  of  facts  or  false  statements,  procure 
or  assist  in  procuring  from  any  life  insurance  organization  any 
policy  or  certificate  of  insurance,  shall  be  punished  by  a  fine  of 
not  to  exceed  one  thousand  dollars  or  by  imprisoinuent  in  the 
county  jail  not  to  exceed  one  vear,  or  by  l)()lli,  in  Ihe  discretion  of 
the  court.     [21  G.  A.,  cli.  K)5,' §  19.1 

Sec.  1817   (C.  0.  5543).     Conspiracy  to  defraud.     If  two  or 

more  persons  conspire  to  defraud  or  obtain  any  money  from  any 
life  insurance  company  or  association  by  means  of  false  state- 
ments as  to  the  death  of  any  person  insured,  or  the  false  appear- 
ance of  the  death  of  any  such  i)erson,  each  shall  be  punished  by 
imprisonment  in  the  penitentiary  not  to  exceed  ten  years.  Any 
person  who  by  such  means  obtains  any  money  or  property  on 
the  policy  or  certificate  of  the  person  so  insured  shall  be  punished 
by  imprisonment  in  the  penitentiary  not  to  exceed  fifteen  years. 
Any  person  who  thus  attempts  to  obtain  money  from  any  such 
company  or  association  shall  be  i)unished  hy  like  imprisonment 
not  to  exceed  seven  years. 

Sec.  1818  (C.  C.  5544).  Fees.  When  not  otherwise  provided, 
each  life  insurance  company  doing  business  in  this  state,  except 
those  organized  under  the  law^s  thereof,  shall  pay  to  the  com- 
missioner of  insurance  the  following  fees: 

1.  Upon  filing  declaration  or  certified  copy  of  the  charter  or  articles 
of  incorporation,  twenty-five  dollars; 

2.  Upon  filing  the  annual  statement,  twenty  dollars; 

3.  For  each  certificate  of  authority  and  certified  copy  thereof,  two 
dollars; 

4.  For  each  agent's  certificate,  two  dollars; 

5.  For  every  copy  of  any  paper  filed,  the  sum  of  twenty  cents  per 
folio,  and  for  certifying  and  affixing  the  official  seal  thereto,  one  dollar; 

6.  For  valuing  policies,  ten  dollars  for  each  million  dollars  of  insur- 
ance or  fraction  thereof. 

Companies  organized  under  the  laws  of  the  state  shall  pay  the 
following  fees : 

1.  For  filing  an  examination  of  the  first  application  and  the  issuance 
of  certificate  thereon,  ten  dollars; 

2.  For  filing  each  annual  statement  and  issuance  of  renewal  certificate, 
three  dollars; 

3.  For  each  agent's  certificate,  fifty  cents. 

The  provisions  of  the  chapter  on  insurance  other  than  life  shall  apply 
as  to  fees  under  this  and  the  two  preceding  chapters,  except  as  modified 
by  this  section.     |  C.  '73,  §  1183.] 

See  also  1752. 


104  LIFE  COMPANIES  AND  ASSOCIATIONS         Ch.  8,  T.  IX 


Sec.  1819  (C.  C.  5545).  Copy  of  application.  All  life  insurance 
companies  or  associations  organized  or  doing  business  in  this 
state  under  the  provisions  of  the  preceding  chapters  shall,  upon 
the  issuance  of  any  policy,  attach  to  such  policy,  or  indorse 
thereon,  a  true  copy  of  any  application  or  representation  of  the 
assured  which  by  the  terms  of  such  policy  are  made  a  part 
thereof,  or  of  the  contract  of  insurance,  or  referred  to  therein, 
or  which  may  in  any  manner  affect  the  validity  of  such  policy, 
or,  upon  reinstatement  of  a  lapsed  policy,  shall  attach  to  the 
renewal  receipt  a  true  copy  of  all  representations  made  by  the 
assured  upon  which  the  renewal  or  reinstatement  is  made.  The 
omission  so  to  do  shall  not  render  the  policy  invalid,  but  if  any 
company  or  association  neglects  to  comply  with  the  requirements 
of  this  section,  it  shall  forever  be  precluded  from  pleading, 
alleging  or  proving  such  application  or  representations,  or  any 
part  thereof,  or  the  falsity  thereof,  or  any  part  thereof,  ^  in 
any  action  upon  such  policy,  and  the  plaintiff  in  any  such  action 
shall  not  be  required,  in  order  to  recover  against  such  company 
or  association,  either  to  plead  or  prove  such  application  or  repre- 
sentation, but  may  do  so  at  his  option. 

See  1741.  As  to  Assessment,  Life  and  Fraternals,  see  Supreme  Court 
opinions. 

A  cross-petition  asking  cancellation  of  the  policy  on  the  ground  of 
fraud  committed  by  the  making  of  false  answers  in  the  application  can- 
not be  sustained  where  a  copy  of  the  application  has  not  been  attached 
to  or  incorporated  in  the  policy.  Biermann  v.  Guaranty  Mut.  Life  Ins.  Co., 
142-341. 

The  purpose  of  this  section  is  to  require  all  representations  and  war- 
ranties to  be  attached  to  the  policy  so  that  all  parts  of  the  contract  may 
be  together  and  the  insured  may  be  at  all  times  in  possession  of  the 
evidence  of  his  contract.    Nutter  v.  Des  Moines  L.  Ins.  Co.,  156-539. 

Whether  the  provision  that  a  copy  of  the  application  must  be  attached 
to  or  endorsed  upon  the  policy  pertains  solely  to  matters  of  remedy  and 
procedure,  and  is  therefore  applicable  in  an  action  in  this  state  upon  a 
policy  regardless  of  the  place  of  contract,  quaere;  but  held  that  the  stat- 
ute of  Minnesota  under  which  the  policy  was  executed,  though  different 
in  terms  from  the  statutory  provision  in  this  state,  should  receive  the 
same  construction,  and  that  evidence  of  fraudulent  statement  in  the  ap- 
plication not  thus  attached  or  endorsed  was  inadmissible.  Rauen  v.  Pru- 
dential Ins.  Co.,  129-725. 

The  provisions  of  18  G.  A.,  chap.  211,  as  to  attaching  copy  of  ap- 
plication to  policy  (now  embodied  in  Code  §  1741)  held  applicable  to 
fraternal  societies.    Stork  v.  Supreme  Lodge  K.  of  P.,  113-724. 

Section  applied.    Mutual  L.  Ins.  Co.,  v.  Kelly,  114-  Fed.,  268. 

Sec.  1820  (C.  C.  5546).  Limitation  of  action.  No  stipulation 
or  condition  in  any  policy  or  contract  of  insurance  or  beneficiary 
certificate  issued  by  any  company  or  association  mentioned  or 
referred  to  in  this  chapter,  limiting  the  time  to  a  period  of  less 
than  one  year  after  knowledge  by  the  beneficiary  within  which 
notice  or  proofs  of  death  or  the  occurrence  of  other  contingency 
insured  against  must  be  given,  shall  be  valid. 

In  case  of  accident  or  licalth  insurance   it  slmll  be  valid  for 


Ch.  8,  T.  IX  LIFE  COMPANIES  AND  ASSOCIATIONS  105 

any  company  or  association  to  limit  by  contract  the  time  when 
notice  or  proofs  of  deatli,  canse  or  disability  or  other  contingency 
insnred  against  shall  be  given;  but  in  no  case  shall  said  notice 
be  limited  to  a  period  of  less  than  60  days  after  knowledge  by 
the  beneficiary  within  which  such  notice  or  proofs  must  be  given, 
|83G.  A,  ch.  113,  §§1,2.] 

The  provisions  of  18  G.  A.,  ch.  211,  §  3,  relating  to  proofs  of  loss, 
held  applicable  to  mutual  benefit  associations  as  well  as  fire  insurance 
companies.    Parsons  v.  A.  O.  U.  W.,  108-6. 

The  time  within  which  an  action  may  be  brought  for  the  loss  on 
the  policy  cannot  by  stipulation  be  limited  to  less  than  one  year  from 
the  time  the  cause  of  action  has  accrued.  Kenny  v.  Bankers  Ace.  Ins. 
Co.,  136-140. 

A  stipulation  in  the  by-laws  of  a  mutual  benefit  association  organized 
and  acting  under  the  provisions  of  code  §  1784  exacting  written  notice 
of  the  death  of  a  member  within  fifteen  days  after  death  is  invalid. 
Connell  v.  loiva  State  Trav.  MeiVs  Assn.,  139-444. 

Sec.  1820-a  (C.  C.  5547).    Disbursements— vouchers— affidavit. 

No  domestic  life  insurance  company  shall  make  any  disbursement 
of  one  hundred  dollars  or  more  unless  the  same  be  evidenced  by 
a  voucher  signed  by  or  on  behalf  of  the  person,  firm,  or  corpora- 
tion receiving  the  money  and  correctly  describing  the  consid- 
eration for  the  paj-ment.  If  the  expenditure  be  for  both  services 
and  disbursements  the  voucher  shall  set  forth  the  services  ren- 
dered and  an  itemized  statement  of  the  disbursements  made. 
When  such  voucher  cannot  be  obtained  the  expenditure  shall  be 
evidenced  by  an  affidavit  of  some  officer  or  agent  of  said  company 
describing  the  character  and  object  of  the  expenditure  and  stating 
the  reason  for  not  obtaining  such  voucher.     [32  G.  A.,  ch.  84.] 

Sec.  1820-b  (C.  C.  5548).  Misrepresentations  prohibited.  No  life 
insurance  corporation  doing  business  in  this  state  and  no  officer, 
director  or  agent  thereof  shall  issue,  circulate,  or  use,  or  cause  or 
permit  to  be  issued,  circulated,  or  used,  any  estimate,  illustration, 
circular  or  statement  of  any  sort  misrepresenting  the  terms  of 
any  policy  issued  by  it  or  the  benefits  or  advantages  promised 
thereby  or  the  dividends  or  share  of  surplus  to  be  received 
thereon,  or  shall  use  any  title  of  any  policy  or  class  of  policies 
misrepresenting  the  true  nature  thereof.     [32  G.  A.,  ch.  85,  §  1.] 

Sec.  1820-c  (C.  C.  5549).  Penalty.  Any  person  violating  the 
provisions  of  this  act,  shall  be  deemed  guilty  of  a  misdemennoi' 
and  shall  be  punished  accordingly.     [32  G.  A.,  ch.  85,  §  2.] 

Sec.  1820-d  (C.  C.  5550).  Reports — form — convention  edition. 
All  reports  contemplated  under  sections  seventeen  hundred  four- 
teen, seventeen  hundred  seventy-three,  seventeen  hundred  ninety, 
seventeen  hundred  ninety-nine  and  eighteen  hundred  thirty  of  the 
code,  and  acts  amendatory  thereof  may  be  upon  forms  furnished 
by  the  commissioner  of  insurance,  and  who  may,  at  his  option 
upon  authority  of  the   executive   council,   purchase   such   forms 


106  EXAMINATIONS  Ch.  8-A,  T.  IX 


as  are  approved  by  the  national  convention  of  insurance  commis- 
sioners, known  as  convention  edition.     [34  G.  A.,  ch.  18,  §  18.] 

Sec.  1821  (C.  C.  5551).  Taxes,  how  paid.  In  case  this  or  any 
other  state  shall  impose  or  levy  any  tax  on  any  company  or 
association,  the  same  may  be  paid  from  any  surplus  or  emer- 
gency fund  of  such  company  or  association. 

CHAPTER  8-A,  TITLE  IX,  CODE. 
EXAMINATION  OF  INSURANCE  COMPANIES. 

See.  1821-a  (C.  C.  5468).  Examination  authorized — at  least 
biennially.  The  commissioner  of  insurance  may,  at  any  time 
he  may  deem  it  advisable,  make  an  examination  of  or  inquire 
into  the  affairs  of  any  insurance  company  authorized  or  seeking 
to  be  authorized  to  transact  business  within  this  state,  provided 
that  such  examination  shall  not  be  less  frequent  lluin  once  dur- 
ing each  biennial  period.     [30  G.  A.,  ch.  56,  §  l.j 

See  lS21b,  c.  Life  1777.  Fraternals  1839b,  c.  Other  than  Life  1700- 
31-53-55. 

Sec.  1821-b  (C.  C.  5469).  Companies  to  assist — administer 
oaths.  When  any  company  is  being  examined,  the  officers, 
employes  or  agents  thereof  shall  produce  for  inspection  all  books, 
documents,  papers  or  other  information  concerning  the  affairs 
of  such  company,  and  shall  otherwise  assist  in  such  examination 
so  far  as  they  can  do.  The  commissioner  of  insurance,  or  his 
legally  authorized  representative  in  charge  of  the  examination, 
shall  have  authority  to  administer  oaths  and  take  testimony 
bearing  upon  the  affairs  of  anv  companj^  under  examination. 
[30  G.  A.,  ch.  56,  §  2.] 

Sec.  1821-c  (C.  0.  5470).  Examiner — assistants — compensation 
■ — expenses — how  paid.  The  commissioner  of  insurance  is  hereby 
authorized  to  appoint  two  insurance  examiners,  one  of  whom 
shall  be  an  experienced  actuary,  the  other  of  whom  shall  be 
an  experienced  and  competent  fire  insurance  accountant,  who, 
while  conducting  examinations,  shall  possess  all  the  powers 
conferred  upon  the  commissioner  of  insurance  for  such  purposes. 
Said  examiners  shall  give  bond  to  the  state  conditioned  upon 
the  faithful  performance  of  their  duties,  in  the  sum  of  five 
thousand  dollars,  which  bond  shall  be  filed  with  and  approved 
by  said  commissioner.  The  entire  time  of  the  examiners  shall 
be  under  the  control  of  the  said  commissioner,  and  shall  be 
employed  as  he  may  direct.  The  said  commissioner  may,  when 
in  his  judgment  it  is  advisable,  appoint  assistants  to  aid  in 
making  examinations.  If  in  making  any  examination  a  situa- 
tion develops  which,  in  the  judgment  of  the  commissioner, 
requires  the  services  of  an  expert  examiner  having  special  train- 


Ch.  8-A,  T.  IX  EXAMINATIONS  107 

ing  and  knowledge  not  possessed  by  the  regular  examiners  of 
the  department  he  may  also  employ  sueh  an  expert  assistant 
examiner,  avIio  shall  receive  as  full  compensation  for  such  serv- 
ices the  sum  of  not  to  exceed  twenty-five  dollars  per  day.  Said 
examiners  and  assistants  and  the  said  commissioner  shall  receive 
actual  and  necessary  traveling,  hotel  and  other  expenses  while 
engaged  in  conducting  examinations  away  from  their  respective 
places  of  residence.  Such  expenses,  together  with  the  compen- 
sation of  the  assistants,  shall  be  paid  by  the  treasurer  of  state, 
upon  warrants  drawn  b}-  the  auditor  of  state,  bills  for  the  same 
having  first  been  approved  by  the  state  board  of  audit.  All 
bills  for  expenses  of  any  examination,  together  with  the  compen- 
sation of  the  assistants,  shall  be  charged  to  and  paid  by  the 
companies  examined,  and  upon  failure  or  refusal  of  any  company 
examined  to  pay  such  bill  or  bills,  the  same  may  be  recovered  in 
an  action  brought  in  the  name  of  the  state  under  the  direction  of 
the  executive  council,  and  the  commissioner  may  also  revoke  the 
certificate  of  authority  of  such  company  to  transact  business 
within  this  state.  All  fees  collected  under  the  provisions  of 
this  chapter  shall  be  paid  to  the  commissioner  of  insurance  and 
shall  be  bv  him  turned  into  the  state  treasurv  as  are  other  fees 
of  his  office.     [39  G.  A.,  ch.  209,  §  17 ;  38  G.  A.,  ch.  348,  §  14.] 

Sec.  1821-d  (C.  C.  5471).  Revocation  of  certificate — publication 
of  results  of  examination.  If  upon  investigation  or  examination, 
it  shall  appear  that  any  company  is  insolvent  or  in  an  unsound 
condition,  or  is  doing  an  illegal  or  unauthorized  business,  or 
that  it  has  refused  or  neglected  for  more  than  thirty  days  to  pay 
final  judgment  rendered  against  it  in  the  courts  of  this  state,  the 
connnissioner  of  insurance  may  suspend  its  authority  to  transact 
business  within  this  state  until  it  shall  have  complied  in  all  re- 
spects with  the  laws  applicable  to  such  company  or  has  paid  such 
judgment,  or  he  may  revoke  its  certificate  of  authority  to  transad 
business  Avithin  this  state  and  having  revoked  the  certificate  oT 
any  company  organized  under  the  laws  of  this  state,  he  shall 
at  once  report  the  same  to  the  attorney  general,  who  shall  apply 
to  the  district  court  or  any  judge  thereof  for  the  appointment 
of  a  receiver  to  close  up  the  affairs  of  said  company ;  provided 
that  in  the  case  of  companies  organized  on  the  stock  plan  under 
the  provisions  of  chapter  four,  title  nine  of  the  code,  the  above 
named  ofiicer  shall  proceed  as  provided  in  sections  seventeen 
hundred  thirty-one  and  seventeen  hundred  thirty-two  of  the 
code;  and  in  case  of  companies  organized  under  the  i^rovisions 
of  chapter  six,  title  nine  of  tlie  code,  said  officers  shall  proceed 
as  provided  in  sections  seventeen  hundred  seventy-seven  and 
seventeen  hundred  seventy-eight  of  tlie  code,  and  no  receiver 
shall  be  apjiointed  for  any  company  contemplated  by  this  chapter 
except  upon  application  of  the  attorney  general,  unless  five  days' 


lOS  EXAMINATIONS  Ch.  S-A,  T.  IX 

notice  shall  have  been  served  upon  the  commissioner  of  insur- 
ance and  attorne}^  general,  stating  the  time  and  place  of  the 
hearing  of  such  application,  at  which  time  and  place  said  officers 
shall  have  the  right  to  appear  and  be  heard  as  to  such  applica- 
tion and  appointment.  The  results  of  any  examination  shall  be 
published  in  one  or  more  newspapers  of  the  state  or  in  pamphlet 
form,  when  in  the  opinion  of  the  commissioner  of  insurance  the 
interests  of  the  public  require  it.     [30  G.  A.,  eh.  50,  §  4.] 

See  1796,  Fraternals  1832-39(1.    Other  than  Life  1715-24-25-47-55. 

Sec.  1821-e  (0.  C.  5472).  Transfer  of  stock  pending  examina- 
tion. Any  transfer  of  stock  of  any  company,  pending  an  iinves- 
tigation,  shall  not  release  the  party  making  the  transfer  from 
any  liabilitv  for  losses  that  mav  have  occurred  previous  to  such 
transfer.     [30  G.  A.,  ch.  56,  §  5^.] 

Sec.  1821-f  (C.  C.  5473).  Soliciting  business  after  revocation 
of  authority — penalty.  Any  officer,  manager,  agent  or  represent- 
ative of  any  insurance  company  contemplated  by  this  act,  who, 
with  knowledge  that  its  certificate  of  authoritj^  has  been  sus- 
IDended  or  revoked,  or  that  it  is  insolvent,  or  is  doing  an  unlawful 
or  unauthorized  business,  solicits  insurance  for  said  company, 
or  receives  applications  therefor,  or  does  any  other  act  or  thing 
toward  receiving  or  procuring  any  new  business  for  said  com- 
pany, shall  be  deemed  guilty  of  a  misdemeanor  and  shall  be 
subject  to  the  penalties  provided  in  section  eighteen  hundred 
fourteen  of  the  code,  and  the  provisions  of  said  section  are  hereby 
extended  to  all  companies  contemplated  by  this  act.  [30  G.  A.,, 
ch.  56,  §  6.] 

Sec.  1821-g  (C.  C.  5474).     Refusing  to  be  examined — penalty. 

Should  an}^  company  decline  or  refuse  to  submit  to  an  examina- 
tion as  in  this  act  provided,  the  commissioner  of  insurance  shall 
at  once  rcA^oke  its  certificate  of  authority,  and  if  such  company 
is  organized  under  the  laws  of  this  state,  he  shall  report  his 
action  to  the  attorney  general,  who  shall  at  once  apply  to  the 
district  court  or  a  judge  thereof  for  the  appointment  of  a 
receiver  to  Avind  up  the  affairs  of  the  company.  [30  G.  A.,  ch. 
56,  §  7.] 

Sec.  1821-h  (C.  C.  5475).  Nonresident  companies.  Examina- 
tion of  insurance  companies  not  located  within  this  state  shall 
only  be  made  by  'order  of  the  executive  council,  and  at  such  time 
as  it  may  direct.     [30  G.  A.,  ch.  56,  §8.] 

Sec.   1821-i    (C.   C.   5476).     ''Company"    defined.     The   word 

''company"  as  used  in  this  act  shall  mean  all  companies  or 
associations  organized  under  the  provisions  of  chapters  four, 
five,  six,  seven  or  eight  of  title  nine  of  the  code,  except  county 
mutuals,  and  all  companies  or  associations  admitted  or  seeking 


Ch.  8-A,  T.  IX  EXAMINATIONS  109 

to  be  admitted  to  this  state  under  the  provisions  of  any  of  the 
chapters  herein  referred  to.     [30  G.  A.,  ch.  56,  §  9.] 

Sec.  1821-j.    Kepeals  conflicting  acts.     [30  0.  A.,  ch.  50,  §  10. | 

CHAPTEU  181,  39TII  G.  A.   (U.   0.  5476-al). 

AN  A('T  to  prohibit  the  sale  or  disposal  of  shares  of  corporate  stock  iu 
conjunction  with  policies  of  insurance. 

Be  It  Enacted  hy  (ho  (General  Asscmhlij  of  the  Hl<itc  of  Iowa: 

Section  1.  l^'roin  ;ni(l  after  tlie  date  this  act  takes  effect,  no 
insurance  company  shall  issue  in  this  state,  nor  permit  its  agents, 
officers  or  employes  to  issue  in  this  state  its  own  stock,  agency 
company  stock  or  other  stock  or  securities,  or  an}^  special  or 
advisory  board  or  other  contract  of  any  kind  promising  returns 
and  profits  as  an  inducement  to  insurance;  and  on  and  after  the 
passage  of  this  act  no  insurance  company  shall  be  autliorized  to 
do  business  in  this  state  which  issues  or  permits  its  agents, 
ofKicers  or  employes  to  issue  in  the  state  of  Iowa  or  in  any  other 
state  or  territory,  agency  company  stock  or  other  stock  or 
securities,  or  any  special  advisory  board  or  other  contract  of 
any  kind  promising  returns  and  profits  as  an  inducement  to 
insurance,  and  no  corporation  or  stock  company,  acting  as  an 
agent  of  an  insurance  company,  nor  any  of  its  agents,  officers 
or  employes,  shall  be  permitted  to  agree  to  sell,  offer  to  sell  or 
give,  or  offer  to  give,  directly  or  indirectly,  in  any  manner 
whatsoever,  any  share  of  stock  securities,  bonds  or  agreement 
of  any  form  or  nature,  promising  returns  and  profits  as  an 
inducement  to  insurance,  or  in  connection  therewith ;  provided 
tliat  nothing  herein  contained  shall  impair  or  effect  in  any  manner 
and  such  contracts  issued  or  made  as  an  inducement  to  insur- 
ance prior  to  the  enactment  hereof,  or  prevent  the  payment  of 
the  dividends  or  returns  therein  stipulated  to  be  paid.  Provided, 
further,  that  the  provisions  of  this  act  shall  not  apply  to  any 
existing  Iowa  corporation  to  whom  a  certificate  of  authority  has 
been  issued  by  the  commissioner  of  insurance  for  the  year  1921 
and  for  the  period  covered  by  such  certificate.  It  shall  be  the 
duty  of  the  commissioner  upon  being  satisfied  that  any  insurance 
company,  or  any  agent  hereof,  has  violated  any  of  the  provisions 
of  this  section,  to  revoke  the  certificate  of  authority  of  the 
company  or  agent  so  offending. 

Sec.  2.  This  act  being  deemed  of  immediate  importance  shall 
be  in  full  force  and  effect  after  its  passage  and  publication  in 
the  Des  Moines  Register  and  the  Des  Moines  Capital,  newspapers 
published  in  Des  Moines,  Iowa. 


110  CONSOLIDATION,  REINSURANCE,  AGENTS    Cli.  8-B,  T.  IX 

CHAPTER  8-B,  TITLE  IX. 

C0NS0]:.ID4TI0N,   REINSURANCE,   PROPORTIONATE   REPRESENTA- 
TION, LICENSING  AGENTS  AND  USE  OF  PROXIES. 

Section  1821-k  (C.  C.  5737).  Agent  must  be  licensed — commis- 
sioner may  revoke.  No  person  shall,  directly  or  indirect!}^,  act 
within  this  state  as  agent  or  otherwise,  in  receiving  or  procuring 
applications  for  insurance,  or  in  doing  or  transacting  any  kind 
of  insurance  business  for  any  company  or  association,  other  than 
count}^  mutuals  or  fraternal  beneficiary  associations,  until  he  has 
procured  from  the  commissioner  of  insurance  a  license  author- 
izing him  to  act  for  such  company  or  association  as  agent,  which 
license  shall  terminate  at  the  end  of  the  insurance  year  for 
which  such  company  or  association  is  authorized  to  transact 
business.  The  commissioner  of  insurance  may,  for  good  cause, 
decline  to  issue  such  license  or  may,  for  like  cause,  revoke  the 
same.  The  fee  charged  for  such  agent's  license  shall  be,  for 
domestic  companies,  fifty  cents,  and  for  companies  located  out- 
side the  state,  two  dollars.     [30  G.  A.,  ch.  57,  §  1.] 

See  1800-1-14-15.    Fraternal  1833-37.    Other  than  Life  1725-49-50. 

Sec.   1821-1    (C.    C.   5738).     Acting  without   license — penalty. 

Any  person  acting  as  agent  or  otherwise  representing  any  insur- 
ance company  or  association,  in  violation  of  the  provisions  of  this 
act,  shall  be  liable  to  a  fine  of  twenty-five  dollars  for  each  dav 
he  shall  so  act.     [30  G.  A.,  ch.  57,  §  2.] 

Sec.  1821-m  (C.  C.  5724).  ''Company"  defined.  The  word, 
''company"  or  "companies"  when  used  in  this  act  shall  mean 
any  company  or  association  organized  under  the  provisions  of 
chapter  four,  five,  six,  seven  or  eight  of  title  nine  of  the  code, 
except  county  mutuals.     [30  G.  A.,  ch.  58,  §  1.] 

Sec.  1821-n  (C.  C.  5725).  Life  companies.  No  company  organ- 
ized under  the  laws  of  this  state  to  do  the  business  of  life 
insurance,  either  on  the  stock,  mutual,  stipulated  premium  or 
assessment  plan,  shall  consolidate  with  any  other  company  or 
reinsure  its  risks,  or  any  part  thereof,  with  any  other  company, 
or  assume  or  reinsure  the  whole  or  any  part  of  the  risks  of  any 
other  company,  except  as  hereinafter  provided.  Provided  that 
nothing  contained  in  this  chapter  shall  prevent  any  company  as 
defined  in  section  one  of  this  act  from  reinsuring  a  fractional 
part  of  any  single  risk.     [30  (J.  A.,  ch.  58,  §  2.] 

Consolidation  with  another  company  does  not  require  tlie  unanimous 
consent  of  the  stockholders.  Beidenkopf  v.  Das  Momrs  L.  Ins.  Co., 
160-629. 

Sec.  1821-0  (C.  C.  5726).  Submit  plan  to  commissioner  of 
insurance — statement,  as  to  condition.  When  any  such  company 
shall  propose  to  consolidate  or  enter  into  any  reinsurance  con- 


Ch.  8-B,  T,  TX    CONSOLIDATION,  REINSURANCE,  AGENTS  111 

tract  with  any  other  company,  it  shall  present  its  plan  to  the 
commissioner  of  insurance,  setting  forth  the  terms  of  its  pro- 
posed contract  of  consolidation  or  reinsurance,  asking  for  the 
approval  or  any  modification  thereof,  which  the  commission 
hereinafter  provided  for  may  approve.  The  company  must  also 
file  a  statement  of  its  assets,  and  if  a  legal  reserve  company,  of 
the  reserve  value  of  its  policies  or  contracts.  |30  G.  A.,  ch. 
58,  §  3.] 

Sec.  1821-p  (C.  C.  5727).  Commission  to  proceed  without 
notice — may  require  notice.  The  commission  shall  proceed  to 
hear  and  determine  such  petition,  without  notice.  But  if  the 
commission  shall  deem  it  necessary  in  order  to  conserve  the 
interests  of  the  policyholders  that  notice  shall  be  given,  it  shall 
require  the  company  or  companies  to  notify,  by  mail,  all  of  the 
members  or  poll c.y holders  of  the  said  company  or  companies  of 
the  pendency  of  such  petition,  and  the  time  and  place  at  which 
the  same  will  be  heard,  the  lengtli  of  time  of  such  notice  to  be 
fb'termined  bj'  the  commission.     |30  (I.  A.,  ch.  58,  §  4.] 

Sec.  1821-q  (C.  C.  5728).  Commission  to  hear  petition — proce- 
dure— submission  to  membership — approval.  For  the  purpose  of 
lieai'ing  and  determining  such  petition,  a  commission  consisting 
of  the  governor,  commissioner  of  insurance  and  attorney  general 
is  hereby  created.  In  the  inability  of  the  governor  to  act,  the 
secretary  of  state  may  act  in  his  stead.  The  commission  may 
make  such  exanunation  into  the  affiairs  and  condition  of  any 
companj^  or  companies  as  it  may  deem  proper,  and  shall  have 
power  to  summon  and  compel  the  attendance  and  testimou}-  of 
Avitnesses,  and  the  production  of  books  and  papers  before  said 
commission  and  may  administer  oaths.  When  notice  shall  have 
been  given  as  above  provided,  any  policjdiolder  or  stockholder 
of  said  company  or  companies  shall  have  the  right  to  reappear 
before  said  commission  and  be  heard  with  reference  to  said  peti- 
tion. Said  commission,  if  satisfied  that  the  interests  of  the  policy- 
holders of  said  company  or  companies  are  properly  protected 
and  no  reasonable  objection  of  said  petition  exists,  may  authorize 
the  proposed  consolidation  or  reinsurance  or  may  direct  such 
modification  thereof  as  may  seem  to  it  best  for  rhe  interests  of 
the  policyholders;  and  said  commission  may  make  such  order 
and  disposition  of  the  assets  of  any  such  company  thereafter 
remaining  as  shall  be  just  and  equitable.  Such  consolidation 
or  reinsurance  shall  only  be  approved  by  the  consent  of  all  the 
members  of  said  commission,  and  it  shall  be  the  duty  of  said 
commission  to  guard  the  interests  of  the  policyholders  of  any 
such  company  or  companies  proposing  consolidation  or  reinsur- 
ance. Tn  case  of  companies  organized  on  the  assessment  plan, 
the  commission  may  require  the  plan  of  consolidation  or  rein- 
surance to  be   submitted   to   the   membership   of  such   company 


112  CONSOLIDATION,  REINSURANCE,  AGENTS    Ch.  8-B,  T.  IX 

or  companies  to  be  voted  uj^on.  When  submitted,  it  shall  be  at 
a  meeting  called  for  that  pur^jose,  thirty  days'  notice  being  given, 
and  a  two-tliirds  vote  of  all  the  members  present  and  voting  shall 
be  necessar}'  to  an  approval  of  any  plan  of  consolidation  or 
reinsurance,  and  no  proxies  shall,  in  any  case,  be  voted.  Anj^ 
plan  of  consolidation  or  reinsurance  submitted  as  herein  con- 
templated, must  first  have  been  approved  bj^  the  commission, 
and  the  result  of  said  vote  must  be  filed  with  the  commissioner 
of  insurance  and  be  by  him  determined  before  any  consolidation 
or  reinsurance  shall  be  effected.     [30  G.  A.,  ch.  58,  §  5.] 

Sec.  1821-r  (0.  C.  5729).  Companies  other  than  life — approval 
of  plan.  When  smy  company  or  companies  not  named  in  section 
two  of  this  act  desire  to  consolidate  or  reinsure^  it  shall  only 
be  necessary  for  such  company  or  companies  to  submit  the  plan 
of  consolidation  or  reinsurance  with  anj^  other  information  that 
may  be  required,  to  the  commissioner  of  insurance  and  the 
attorney  general  and  have  the  same  by  them  approved.  [30  G. 
A.,  ch.  58,  §  6.] 

Sec.  1821-s  (C.  C.  5730).  Consolidation  with  unauthorized 
companies  prohibited.  No  company  or  companies  as  defined  by 
section  one  of  this  act  shall  consolidate  or  reinsure  with  any 
other  company  or  companies  not  authorized  to  transact  b.usiness 
in  this  state.     [30  G.  A.,  ch.  58,  §  7.] 

Sec.  1821-t  (C.  C.  5731).  Expenses — how  paid.  All  expenses 
and  costs  incident  to  proceedings  under  the  provisions  of  this 
chapter  shall  be  paid  b}"  the  company  or  companies  bringing  the 
petition.     [30  G.  A.,  ch."  58,  §  8.] 

See.  1821-u  (C.  C.  5732).  Penalty.  Any  officer,  director  or  stock- 
holder of  any  company  or  companies,  as  defined  in  this  act,  violat- 
ing or  consenting  to  the  violation  of  any  of  the  provisions  hereof, 
shall  be  punished  by  a  fine  of  not  less  than  one  thousand  dollars, 
or  by  imprisonment  in  the  county  jail  for  not  less  than  one  year, 
or  by  both  such  fine  and  imprisonment  in  the  discretion  of  the 
court.     [30  G.  A.,  ch.  58,  §  9.] 

Sec.  1821-v  (C.  C.  5733).    Proportionate  representation.    From' 

and  after  the  taking  effect  of  this  act,  the  holder  or  holders, 
jointly  or  severally,  of  not  less  than  one-fifth  but  less  than  a 
majority  of  the  shares  of  the  capital  stock  of  corporations  organ- 
ized on  the  stock  plan  under  the  laws  of  this  state  for  transacting 
the  business  of  life  or  fire  insurance,  shall  be  entitled  to  nominate 
to  be  elected  or  appointed,  as  the  case  may  be,  directors  or  other 
persons  performing  the  functions  of  directors  by  whom,  accord- 
ing to  the  articles  of  incorporation  of  such  corporations  its  affairs 
are  to  be  conducted.  In  the  event  such  nomination  shall  be 
made,  there  shall  be  elected  or  appointed  to  the  extent  that  the 


Ch.  8-B,  T.  IX    CONSOLIDATION,  REINSURANCE,  AGENTS  113 

total  iiuinber  to  be  elected  or  appointed  is  divisible,  such  propor- 
tionate iniiiiber  from  tln^  persons  so  nominated  as  the  sliares  of 
stock  liehl  by  persons  making'  sueli  jiominalions  bear  to  llie 
whole  number  of  shares  issued;  provided  the  holder  or  holders 
of  the  miniority  shares  of  stock  shall  only  be  entitled  to  one-fifth 
(disregarding  fractions)  of  the  total  number  of  directors  to  be 
elected  for  each  one-fifth  of  the  entire  capital  stock  of  such 
corporation  so  held  by  them;  and  provided  further  that  this  act 
shall  not  be  construed  to  prevent  the  holders  of  a  majority  oi- 
the  stock  of  any  such  corporation  from  electing  the  majority 
of  its  directors.  Vacancies  occurring  from  time  to  time  shall  be 
filled  so  as  to  preserve  and  secure  to  such  minority  and  majority 
stockholders  proportionate  representation  as  above  provided.  [32 
G.  A.,  ch.  74,  §  1.] 

Sec.  1821-w  (C.  C.  5734).    Directors — Articles  of  Incorporation. 

All  such  existing  corporations  shall  by  amendment  to  their  articles 
of  incorporation,  approved  by  the  commissioner  of  insurance, 
provide  for  the  nomination,  election  or  appointment,  of  the  direc- 
tors or  other  persons  by  whom  its  affairs  are  to  be  conducted,  in 
conformity  with  the  provisions  of  this  act,  and  the  articles  of  in- 
corporation of  all  such  incorporations  hereafter  organized  shall 
contain  like  provisions.     [32  G.  A.,  ch.  74,  §  2.] 

Directors  other  than  Life,  see  1695-6. 

Sec.  1821-x  (C.  C.  5739).  Voting  by  proxies — conditions.  Any 

insurance  company  or  association  organized  under  the  laws  of 
this  state,  may  provide  in  its  articles  of  incorporation,  that  its 
members  or  stockholders  may  vote  proxies,  voluntarily  given, 
upon  all  matters  of  business  coming  before  the  stated  or  called 
meetings  of  the  stockholders  or  members,  including  the  election 
of  directors.  No  proxy  shall  be  valid  unless  signed  and  executed 
within  two  months  prior  to  such  meeting  or  election  for  which 
said  proxy  was  given,  and  such  proxy  shall  be  limited  to  thirty 
days  subsequent  to  the  date  of  such  meeting  or  election,  and 
may  be  revoked  at  any  time  by  the  policyholder  or  stockholder 
who  executed  the  said  proxy.  All  proxies  shall  be  filed  with  the 
companv  at  least  one  day  prior  to  an  election  at  which  they  are 
to  be  used.  [32  G.  A.,  ch.  77,  §  1.] 
See  Praternals  1839g. 

Sec.  1821-y  (C.  C.  5740).  Solicitation  by  agents — expenditure 
of  funds.  Soliciting  of  proxies  by  an  agent  of  the  company  either 
for  personal  use  or  for  the  use  of  officers  of  the  company  or 
association,  or  for  any  other  persons,  is  forbidden.  Nor  shall 
any  of  the  funds  of  a  company  or  association  be  expended  in 
procuring  proxies.     [32  G.  A.,  ch.  77,  §  2,] 

Sec.  1821-z  (C.  C.  5740).     Penalty.     Any  violation  of  this  act 


114  FRATERNAL    SOCIETIES  Ch.  9,  T.  IX 

shall  be  deemed  a  misdemeanor  and  punishable  accordingly.  [32 
G.  A.,  ch.  77,  §  3.] 

CHAPTER  9,  TITLE  IX,  CODE. 

FRATERNAL  BENEFICIARY  SOCIETIES,  ORDERS  OR 
ASSOCIATIONS. 

Section  1822   (C.  0.   5552).     Defined — general  provisions.     A 

fraternal  beneficiary  association  is  hereby  declared  to  be  a  cor- 
poration, society  or  voluntary  association,  formed  or  organized 
and  carried  on  for  the  sole  benefit  of  its  members  and  their  bene- 
ficiaries, and  not  for  profit,  and  having  a  lodge  system,  witli 
ritualistic  form  of  work  and  representative  form  of  government. 
Such  association  shall  make  provision  for  the  payment  of  benefits 
in  case  of  death,  and  may  make  provision  for  the  payment  of 
benefits  in  case  of  sickness,  temporary  or  permanent  physical 
disability,  either  as  a  result  of  disease,  accident  or  old  age,  pro- 
vided the  period  of  life  at  which  pajnnent  of  phj^sical  disabilit}^ 
benefits  on  account  of  old  age  commences  shall  not  be  under 
seventy  years,  subject  to  the  compliance  by  members  with  its 
constitution  and  laws.  Provided  that  beneficiary  societies  or 
associations,  whose  membership  is  confined  to  the  members  of 
any  one  religious  denomination,  shall  onl}^  be  required  to  have 
a  branch  system  and  a  representative  form  of  government.  Such 
beneficiary  societies  or  associations  shall  be  governed  by  the 
provisions  of  chapter  nine,  title  nine  of  the  code,  and  shall  be 
exempt  from  the  provisions  of  the  statutes  of  this  state,  relating 
to  life  insurance  companies,  to  the  same  extent  as  fraternal  bene- 
ficiary associations.  But  the  provisions  of  this  chapter  shall 
not  be  construed  to  include  fraternal  orders  which  only  provide 
for  sick  and  funeral  benefits. 

(C.  C.  5592).  Any  fraternal  benefit  society  authorized  to  do 
business  in  tliis  state  and  operating  on  the  lodge  plan,  may 
provide  in  its  constitution  and  by-laws,  in  addition  to  other 
benefits  provided  for  herein,  for  the  paj^ment  of  death  or  annuity 
benefits  upon  the  lives  of  children  between  the  ages  of  two  and 
eighteen  years  at  next  birthday,  for  whose  support  and  main- 
tenance a  member  of  such  society  is  responsible.  Any  such 
society  may  at  its  option  organize  and  operate  branches  for 
such  children,  and  membership  in  local  lodges  and  initiation 
therein  shall  not  be  required  of  such  children,  nor  shall  they 
have  any  voice  in  the  management  of  the  society.  The  total 
benefits  payable  as  above  provided  shall  in  no  case  exceed  the 
following  amounts  at  ages  at  next  birthday  at  time  of  death, 
respectively,  as  follows :  Two,  thirty-four  dollars ;  three,  forty 
dollars;  four,  forty-eight  dollars;  five,  fifty-eiglit  dollars;  six, 
one  hundred  and  forty  dollars;  seven,  one  hundred  and  sixty- 


,  Ch.  9,  T.  IX  FRATERNAL    SOCIETIES  115 

eight  dollars ;  eight,  two  hundred  dollars ;  nine,  two  hundred  and 
forty  dollars;  ten,  three  hundred  dollars;  eleven,  three  hundred 
and  eighty  dollars;  tAvelve,  four  hundred  and  sixty  dollars;  thir- 
teen to  fifteen,  five  hundred  and  twenty  dollars,  and  sixteen  to 
eighteen  j^ears,  where  not  otherwise  authorized  by  law,  six  hun- 
dred dollars. 

(0.  C.  5593).  No  benefit  certificate  as  to  any  child  shall  take 
effect  until  after  medical  examination  or  inspection  by  a  licensed 
medical  practitioner,  in  accordance  with  the  laws  of  the  society, 
nor  shall  the  first  benefit  certificate  be  so  issued  unless  the  society 
shall  simultaneously  put  in  force  at  least  five  hundred  such 
certificates,  on  each  of  which  at  least  one  assessment  has  been 
paid,  nor  where  the  number  of  lives  represented  by  such  certifi- 
cate falls  below  five  hundred.  The  death  benefit  contributions 
to  be  made  upon  such  certificate  shall  be  based  upon  the  ''Stand- 
ard Mortality  Table"  of  the  ''English  Life  Table  Number  Six" 
and  a  rate  of  interest  not  greater  than  four  per  cent  per  annum, 
or  upon  a  higher  standard;  provided  that  contribution  may  be 
waived  or  returns  may  be  jnade  from  any  surplus  held  in  excess 
of  reserve  and  other  liabilities,  as  provided  in  the  by-laws,  and 
provided  further,  that  extra  contributions  shall  be  made  if  the 
reserves  hereafter  provided  for  become  impaired. 

(C.  C.  5594).  Any  society  entering  into  such  insurance  agree- 
ments shall  maintain  on  all  such  contracts  the  reserve  required 
by  the  standard  of  mortality  and  interest  adopted  by  the  society 
for  computing  contributions,  as  provided  in  section  2,  and  the 
funds  representing  the  benefit  contributions  and  all  accretions 
thereon  shall  be  kept  as  separate  and  distinct  funds,  independent 
of  the  other  funds  of  the  society  and  shall  not  be  liable  for  nor 
used  for  the  payment  of  the  debts  and  obligations  of  the  society 
other  than  the  benefits  herein  authorized ;  provided  that  a  society 
may  provide  that  when  a  child  reaches  the  minimum  age  for 
initiation  into  membership  in  such  society,  any  benefit  certificate 
issued  hereunder  may  be  surrendered  for  cancellation  and 
exchanged  for  any  other  form  of  certificate  issued  by  the  society, 
provided  that  such  surrender  will  not  reduce  the  number  of  lives 
insured  in  the  branch  below  five  hundred,  and  upon  the  issuance 
of  such  new  certificate  any  reserve  upon  the  original  certificate 
herein  provided  for  sliall  be  transferred  to  the  credit  of  the 
new  certificate.  Neither  the  person  who  originally  made  appli- 
cation for  benefits  on  account  of  such  child,  nor  the  beneficiary 
named  in  such  original  certificate,  nor  the  person  who  paid  the 
contributions,  shall  have  any  vested  right  in  such  new  certificate, 
the  free  nomination  of  a  beneficiary  under  the  new  certificate 
being  left  to  the  child  so  admitted  to  benefit  membership. 

(C.  C.  5595).    An  entirely,  separate  financial  statement  of  the 


116  FRATERNAL    SOCIETIES  Cli.  9,  T.  IX 


business  transactions  and  of  assets  and  liabilities  arising  there- 
from shall  be  made  in  its  annual  report  to  the  insurance  commis- 
sioner by  any  society  availing  itself  of  the  provisions  hereof. 
The  separation  of  assets,  funds  and  liabilities  required  hereby 
shall  not  be  terminated,  rescinded  or  modified  nor  shall  the 
funds  be  diverted  for  any  use  other  than  as  specified  in  section 
3,  as  long  as  any  certificates  issued  hereunder  remain  in  force, 
and  tliis  requirement  shall  be  recognized  and  enforced  in  any 
liquidation,  reinsurance,  merger,  or  other  change  in  the  condi- 
tion of  fhe  status  of  the  society. 

(C.  C.  5596).  Any  society  sliall  liave  the  right  to  provide 
in  its  laws  and  the  certificate  issued  hereunder  for  specified 
pa}  ments  on  account  of  the  expense  or  general  fund,  which  pay- 
ments shall  or  shall  not  be  mingled  AVith  the  general  fund  of 
the  society  as  its  constitution  and  by-laws  may  provide. 

(0.  0.  5597).  In  the  event  of  the  termination  of  membership 
in  the  society  by  a  person  responsible  for  the  support  of  any 
child,  on  whose  account  a  certificate  maj^  have  been  issued,  the 
certificate  may  be  continued  for  the  benefit  of  the  estate  of  the 
child,  provided  the  contributions  are  continued,  or  for  the  benefit 
of  any  other  person  responsible  for  the  support  and  maintenance 
of  such  child,  who  shall  assume  the  payment  of  the  required 
contributions. 

(C.  C.  5553).  Any  fraternal  beneficiary  society  issuing  certi- 
ficates, based  upon  rates  not  lower  than  those  required  by  the 
mortality  table  set  forth  in  section  eighteen  hundred  thirty-nine-j 
(1839-.J),  may  issue  certificates  providing  for  death  benefits  upon 
the  term,  Avhole  life  or  limited  payment  plan,  in  which  event  it 
shall  maintain  the  required  legal  reserve  on  all  such  certificates, 
based  on  the  standard  adopted  for  the  issuing  of  such  certificates, 
which  said  reserve  shall  be  set  aside  and  held  as  a  special  reserve 
fund  for  the  exclusive  benefit  of  the  members  contributing  thereto. 
Any  such  society  may  grant  to  its  members  extended  and  paid-up 
protection  or  such  w^ithdrawal  equities  as  its  constitution  and  laws 
may  permit,  provided  that  such  grants  shall  in  no  case  exceed  in 
value  the  portion  of  the  reserve  to  the  credit  of  the  members  to 
whom  they  are  made.  [38  G.  A.,  ch.  343;  37  G.  A.,  ch.  431;  34 
G.  A.,  ch.  81,  §  1;  26  G.  A.,  ch.  27,  §  1.] 

Unless  it  appears  that  an  association  engaged  in  the  business  of  in- 
surance is  within  the  definition  of  fraternal  beneficiary  societies,  it  wili 
be  presumed  to  be  within  the  general  provisions  relating  to  life  insur- 
ance companies  and  associations.    Krause  v.  Modern  Woodmen,  133-199. 

The  provision  of  code  §  1812,  relating  to  life  insurance  companies  and 
associations,  that  the  certificate  of  the  examining  physician  estops  the 
company  from  defending  on  the  ground  that  the  assured  was  not  i^ 
condition  of  health  required  by  the  policy  at  the  time  of  the  issuance 
of  the  certificate,  in  the  absence  of  any  evidence  that  the  certificate  was 


Ch.  9,  T.  IX  FRATERNAL    SOCIETIES  117 

acquired  by  any  fraud  or  deceit  of  the  assured,  has  no  application  to 
beneficiary  societies  or  associations.  Sargent  v.  Modern  Brotherhood, 
148-600. 

Such  an  association  may  rely  upon  mis-representations  as  breaches  of 
warranty.  But  held  that  under  a  liberal  construction  in  favor  of  the 
assured  the  answers  to  questions  in  the  application  were  not  false  in 
such  sense  as  to  defeat  recovery.     IMd. 

"Initiation"  into  a  fraternal  lodge  is  not  a  condition  precedent  to  the 
validity  of  a  certificate  of  insurance  by  reason  of  the  language  of  this 
section.  It  may  be  made  a  condition  precedent  by  the  constitution  or 
by-laws.     Schivorm  v.  Frat.  Bkrs.  Res.  Soc,  168  la.,  579. 

Sec.  1822-a  (0.  C.  5554).  Membership  confined  to  one  religious 
denomination — heretofore  organized.  Any  corporation  heretofore 
organized  under  the  laws  of  this  or  any  other  state,  whose  mem- 
bership is  confined  to  the  members  of  any  one  religious  denomina- 
tion, and  whose  plan  of  business  permits,  may  take  advantage  of 
this  act  by  amendment  to  its  articles  of  incorporation,  and  hy 
complying  with  the  provisions  of  section  eighteen  hundred  thirty- 
two  of  the  supplement  to  the  code,  1907;  provided,  that  such 
corporations  as  on  March  fifteenth,  nineteen  hundred  and  seven, 
were  and  have  since  continuously  been  doing  business  under 
chapter  seven,  title  nine  of  the  cocle,  may  take  advantage  of  this 
act  without  raising  their  mortuary  assessment  rates  or  showing 
that  their  said  rates  are  such  as  are  required  by  section  eighteen 
hundred  and  thirty-nine-j  of  the  supplement  to  the  code,  1907. 
[36  G.  A.,  S.  F.  260,  §  1 ;  34  G.  A.,  ch.  81,  §  2.] 

Sec.  1823  (0.  C.  5555).  Assessments.  The  fund  from  which  the 
payment  of  such  benefits  shall  be  made  and  the  expenses  of  such 
association  defrayed  shall  be  derived  from  beneficiary  calls,  as- 
sessments or  dues  collected  from  its  members.     [26  G.  A.,  ch.  21, 

§  2.] 

Sec.  1824  (0.  C.  5556).  Insurable  age — beneficiary.  No  fra- 
ternal association  created  or  organized  under  tlrj  provisions  of 
this  chapter  shall  issue  any  certificate  of  membership  to  any  per- 
son under  the  age  of  fifteen  years,  nor  over  the  age  of  sixty-five 
years,  nor  unless  the  beneficiary  under  said  certificate  shall  be 
the  wife,  husband,  relative  by  blood  to  the  fourth  degree,  father- 
in-law,  mother-in-law,  son-in-law,  daughter-in-law,  step-father, 
step-mother,  step-children,  children  by  legal  adoption,  legal  re- 
presentative or  to  a  person  or  persons  dependent  upon  the  mem- 
ber; provided  that  if  after  the  issuance  of  the  original  certificate 
the  member  shall  become  dependent  upon  an  incorporated  chari- 
table institution,  he  shall  have  the  privilege,  with  the  consent  of 
the  governing  body  or  board  of  the  society,  to  make  such  institu- 
tion his  beneficiary.  Within  the  above  restrictions  each  member 
shall  have  the  right  to  designate  his  beneficiary  and  from  time  to 
time  have  the  same  changed  in  accordance  with  the  laws,  rules  or 
regulations  to  the  society,  and  no  beneficiary  shall  have  or  obtain 


118  FRATERNAL    SOCIETIES  Ch.  9,  T.  IX 

any  vested  interest  in  said  benefit  until  the  same  lias  become  due 
and  paj'able  npon  the  death  of  said  member,  provided  that  any 
society  may,  by  its  laws,  limit  the  scope  of  beneficiaries  Avithin  the 
above  classes;  provided  further,  that  any  associaxion  or  society, 
whose  articles  of  incorporation,  or  constitution,  or  rules,  or  by- 
laAvs,  provide  that  at  the  time  of  the  admission  to  membership 
into  such  society,  every  member,  when  joining  shall  belong  to  one 
occupation  or  guild,  may  become  a  beneficiary  as  may  be  pro- 
vided in  its  articles  of  incorporation,  or  constitution,  or  rules, 
or  by-laws.  [39  G.  A.,  ch.  240;  38  G.  A.,  ch.  240;  26  G.  A.,  ch. 
21,  §  3.] 

Sec.  1825  (C.  0.  5557).  Statutes  applicable.  Such  associations 
shall  be  governed  by  this  chapter,  and  shall  be  exempt  from  the 
provisions  of  the  statutes  of  this  state  relating  to  life  insurance 
companies,  except  as  hereinafter  provided.      [26  G.  A.,  ch.  21, 

•§  4.] 

The  provisions  of  the  general  chapter  relating  to  life  insurance  are  not 
applicable  to  mutual  benefit  associations  unless  incorporated  into  the 
chapter  relating  to  such  associations.    Knapp  v.  Brotherhood,  128-566. 

Sec.  1826  (C.  C.  5558).  Copy  of  application.  All  such  associa- 
tions shall,  upon  the  issue  or  renewal  of  any  beneficiary  certifi- 
cate, attach  to  such  certificate  or  indorse  thereon  a  true  copy  of 
any  application  or  representation  of  the  member  which  by  the 
terms  of  such  certificate  are  made  a  part  thereof.  The  omission 
so  to  do  shall  not  render  the  certificate  invalid,  but  if  any  such 
association  neglects  to  compl}^  with  the  requirements  of  this  sec- 
tion it  shall  not  plead  or  prove  the  falsity  of  any  such  certificate 
or  representation  or  any  part  thereof  in  any  action  upon  such  cer- 
tificate, and  the  plaintiff  in  any  such  action,  in  order  to  recover 
against  such  association,  shall  not  be  required  to  either  plead  or 
prove  such  application  or  representation.     [Same,  §  5.] 

Life  1819.     Other  than  Life  1741. 

The  statute  does  not  require  a  true  likeness  or  fascimile  of  the  ap- 
plication to  be  attached  to  the  policy  and  discrepancies  which  do  not 
involve  any  construction  in  determining  that  the  copies  of  the  applica- 
tion are  the  same  may  be  disregarded.  Knapp  v.  Brotherhood  of  Am. 
Yeomen.  139-136. 

The  provisions  of  the  statute  as  to  incorporating  the  application  in 
or  attaching  a  copy  of  it  to  the  policy  cannot  be  waived  by  the  assured. 
Mullen  V.  Woodmen  of  the  Worlds  144-228. 

Sec.  1827  (C.  0.  5559).  Where  suable.  Such  associations  may 
be  sued  in  am^  county  in  which  is  kept  their  principal  place  of 
business,  or  in  which  the  beneficiary  contract  was  made,  or  in 
which  the  death  of  the  member  occurred;  but  actions  to  recover 
old  age,  sick  or  accident  benefits  may,  at  the  option  of  the  bene- 
ficiary, be  brought  in  the  county  of  his  residence.     [Same,  §  6.] 

"When  an  officer  of  an   assessment  insurance  company  has  authority 


Ch.  9,  T.  IX  FRATERNAL    SOCIETIES  119 

to  waive  proof  of  loss,  and  writes  a  letter  in  which  he  says  the  claim 
is  invalid  by  reason  of  the  suspension  of  the  member  but  makes  no  ob- 
jection for  failure  to  make  proof  of  loss,  the  same  is  waived.  Alexander 
V.  Grand  Lodge  A.    O.  U.  W.,  119-519. 

When  an  assessment  company  accepts  membership  dues  through  its 
authorized  officer,  it  is  estopped  from  denying  the  validity  of  the  cer- 
tificate on  any  ground  which  would  have  justified  a  refusal  of  such  dues 
at  the  time  offered,  provided  the  association,  through  its  officer,  knew  or 
had  notice  of  such  facts  as  would  charge  it  or  its  officer  with  knowledge 
of  the  invalidity  of  the  certificate.    IMd. 

Parties  to  a  mutual  benefit  certificate  may  agree  to  be  bound  by  after- 
enacted  by-laws,  provided  such  by-laws  are  reasonable,  and  not  retro- 
active.   Ross  V.  Modern  Brotherhood  of  America,  120-692. 

Sec.  1828  (C.  C.  5560).  Exemption  of  proceeds.  The  proceeds 
of  any  beneficiary  certificate  issued  by  any  such  association,  and 
of  any  claims  for  benefits,  shall  be  exempt  from  execution  and 
attachment,  to  the  same  extent  as  the  proceeds  of  any  policy  of 
life  or  endowment  insurance,  as  is  now  or  may  hereafter  be  pro- 
vided by  the  laws  of  this  state.     [Same,  §  7.] 

See  Sec.  1304.    Appendix.     See  also  1805. 

Sec.  1829  (C.  C.  5561).  Foreign  companies.  Any  such  associa- 
tions organized  under  the  laws  of  any  other  state  shall  be  per- 
mitted to  do  business  in  this  state,  when  it  shall  have  filed  with 
the  commissioner  of  insurance  a  duly  certified  copy  of  its  charter 
and  articles  of  association,  and  a  copy  of  its  constitution  or  laws, 
certified  to  by  its  secretary  or  corresponding  officer,  together  Avith 
an  appointment  of  the  commissioner  of  insurance  of  this  state  as 
a  person  upon  whom  process  may  be  served  as  hereinafter  pro- 
vided, if  such  association  shall  be  shown  to  be  authorized  to  do 
business  in  the  state  in  wliich  it  is  incorporated  or  organized. 
The  commissioner  of  insurance  may  personally,  or  by  some  per- 
son to  be  designated  by  him,  examine  into  the  conditions,  affairs, 
character  and  business  methods,  accounts,  books  ar^d  investments 
or  such  association,  at  its  home  office,  wliich  examination  shall 
be  at  the  expense  of  such  association,  and  shall  be  made  within 
thirty  days  after  demand  therefor;  and  the  expense  of  such  ex- 
amination shall  be  limited  to  five  dollars  i)er  day  and  the  nec- 
essary expenses  of  travel  and  for  hotel  bills.  If  the  commissioner 
of  insurance,  after  such  examination,  is  of  the  opinion  that  no 
permit  should  be  granted  to  such  association,  he  may  refuse  to 
issue  the  same.     [Same,  §  9.] 

See.  1830  (C.  C.  5562).  Report.  Every  such  association  doing 
business  in  this  stale  shall,  on  or  before  the  first  day  of  March  of 
each  year,  make,  and  file  with  the  commissioner  of  insurance,  a 
report  for  the  year  ending  on  the  thirty-first  day  of  December 
immediately  preceding.  All  reports  shall  be  upon  blank  forms  to 
be  provided  by  the  commissioner  of  insurance,  or  may  be  printed 
in   i^amphlet    form,    and    shall    be    verified   under    oath   by    the 


120  FRATERNAL    SOCIETIES  Cli.  9,  T.  IX 

authorized  officers  of  such  association,  and  shall  be  published,  or 
the  substance  thereof,  in  the  annual  report  of  the  commissioner  of 
insurance  under  the  separate  title  "Fraternal  Beneficiary  Asso- 
ciations, ' '  and  shall  contain  answers  to  the  following  questions : 

1.  Number  of  certificates  issued  during  the  year,  or  members  ad- 
mitted; 

2.  Amount  of  indemnity  effected  thereby; 

3.  Number  of  losses  or  benefit  liabilities  incurred; 

4.  Number  of  losses  or  benefit  liabilities  paid; 

5.  The  amount  received  from  each  assessment  for  the  year; 

6.  Total  amount  paid  members,  beneficiaries,  legal  representatives  or 
heirs; 

7.  Number  and  kind  of  claims  for  which  assessments  have  been  made; 

8.  Number  and  kind  of  claims  compromised  or  resisted,  and  brief 
statement  of  reason; 

9.  Does  association  charge  annual  or  other  periodical  dues  or  admis- 
sion fees; 

10.  How  much  on  each  one  thousand  dollars  annually,  or  i^ei'  capita,  as 
the  case  may  be; 

11.  Total  amount  received,  from  what  source,  and  the  disposition 
thereof; 

12.  Total  amount  of  salaries,  fees,  per  diem,  mileage,  expenses  paid  to 
officers,  showing  amount  pair  to  each; 

13.  Does  the  association  guarantee,  in  its  certificates,  fixed  amounts 
to  be  paid  regardless  of  amount  realized  from  assessments,  dues,  admis- 
sion fees  and  donations; 

14.  If  so,  state  amount  guaranteed,  and  the  security  of  such  guarantee; 

15.  Has  the  association  a  reserve  or  emergency  fund; 

16.  If  so,  how  is  it  created,  and  for  what  purpose,  the  amount  thereof, 
and  how  invested; 

17.  Has  the  association  more  than  one  class; 

18.  If  so,  how  many,  and  amount  of  indemnity  in  each. 

19.  Number  of  members  in  each  class; 

20.  If  voluntary,  so  state,  and  give  date  of  organization; 

21.  If  organized  under  the  laws  of  this  state,  under  what  law  and  at 
what  time,  giving  chapter  and  year  and  date  of  passage  of  the  act; 

22.  If  organized  under  the  laws  of  any  other  state,  territory  or  prov- 
ince, state  such  fact  and  date  of  organization,  giving  chapter  and  year 
and  date  of  passage  of  the  act; 

23.  Number  of  certificates  of  beneficiary  membership  lapsed  during 
the  year; 

24.  Number  in  force  at  beginning  and  end  of  year;  if  more  than  one 
class,  number  in  each  class; 

25.  Names  and  addresses  of  its  presidents,  secretary  and  treasurer,  or 
corresponding  officers. 

The  commissioner  of  insurance  is  empowered  to  make  any  ad- 
ditional inquiries  of  any  such  association  relative  to  the  business 
contemplated  by  this  act,  and  such  officer  of  such  association  as 
the  commissioner  of  insurance  may  require  shall  promptly  reply 
in  writing,  under  oath,  to  all  such  inquiries.     [Same,  §  10.] 

See  1836.    Life  1773.    Applicable  1790-99.    Other  than  Life  1714-16. 

Sec.  1831  (C.  C.  5563).  Service  of  process.  Any  such  associa- 
tion permitted  to  do  business  within  this  state,  and  not  having  its 
principal  office  within  this  state,  and  not  organized  under  the  laws 


Ch.  J),  T.  IX  FRATERNAL    SOCIETIES  121 

of  this  state,  shall  appoint,  in  writing,  the  commissioner  of  insur- 
ance to  be  attorney  in  fact,  on  whom  all  process  in  any  action  or 
proceeding  against  it  shall  be  served,  and  in  sucli  writing  shall 
agree  that  any  process  against  it  which  is  served  on  said  attorney 
in  fact  shall  be  of  the  same  validity  as  if  served  upon  the  asso- 
ciations, and  that  the  authority  shall  continue  in  force  so  long 
as  any  liability  remains  outstanding  in  this  state.  Copies  of  such 
certificate,  certified  by  said  commissioner  of  insurance,  shall  be 
deemed  sufficient  evidence  thereof,  and  shall  be  admitted  in  evi- 
dence with  the  same  force  and  effect  as  the  original.  Service 
upon  such  attorne.y  shall  be  deemed  sufficient  service  upon  such 
association.  When  legal  process  against  any  such  association  is 
served  upon  said  commissioner  of  insurance,  he  shall  immedi- 
ately' notify  the  association  of  such  service  by  letter,  postage  pre- 
paid, directed  and  mailed  to  its  secretary  or  corresponding  officer, 
and  shall  within  two  days  after  such  service  forAvard  in  the 
same  manner  a  copy  of  the  process  served  u'pon  him  to  such 
officer.  The  commissioner  of  insurance  shall  keep  a  record  of 
all  processes  served  upon  him,  which  record  shall  show  the  day 
and  hour  when  such  service  was  made.     [Same,  §  11. J 

Life  180S.    Applicable  3530.    Miscel.  Sections.    Other  than  Life  1722. 

Sec.  1832  (C.  C.  5564).  Annual  certificate — amount  of  insur- 
ance required.  Before  any  beneficiary  society,  order  or  associa- 
tion shall  be  authorized  to  commence  business  within  this  state, 
it  shall  submit  to  the  commissioner  of  insurance  its  by-laws  or 
rules  by  which  it  is  to  be  governed,  and  also  its  articles  of  in- 
corporation, if  a  corporation,  which  shall  include  its  plan  of 
business.  The  commissioner  of  insurance  shall  thereupon  sub- 
mit its  articles  of  incorporation  to  the  attorney-general  for  ex- 
amination, and  if  found  b3'  him  to  be  in  harmony  with  this 
title,  chapter  and  with  law,  he  shall  so  certify  upon  said  ar- 
ticles and  return  them  to  the  commissioner  of  insurance.  IF 
the  commissioner  of  insurance  shall  approve  the  articles  ami 
also  the  by-laws  or  rules,  he  shall  issue  to  the  society,  order 
or  association  a  permit  in  writing,  authorizing  it  to  transact 
business  within  this  state  for  a  period  of  one  year  from  the 
first  day  of  April  of  the  year  of  its  issue,  for  which  certificate 
and  all  proceedings  in  connection  therewith,  there  shall  be  paid 
to  the  commissioner  of  insurance  a  fee  of  twenty-five  dollars,  and 
for  each  annual  renewal  thereof  a  like  fee  shall  be  paid;  pro- 
vided, however,  that  before  such  certificate  shall  be  issued,  the 
fraternal  society,  order  or  association  shall  have  actual  bona  fide 
applications  upon  the  lives  of  at  least  five  hundred  persons,  resi- 
dents of  this  state,  for  at  least  one  thousand  dollars  of  insurance 
each,  and  the  commissioner  of  insurance  may  require  the  ]")res- 
entation  of  such  applications,  signed  by  the  applicants  themselves. 
No  renewal  of  certificate  of  authority  shall  be  made  to  any  so- 


122  FRATERNAL    SOCIETIES  Ch.  9,  T.  IX 

ciety,  order,  or  association  whose  membersliip,  in  good  standing, 
or  the  amount  of  whose  insurance  in  force  shall  be  reduced  be- 
low the  above  requirements.  Societies,  orders  or  associations  not 
organized  under  the  laws  of  this  state,  in  addition  to  the  require- 
ments of  the  provisions  of  section  eighteen  hundred  twenty-nine 
of  the  code,  must. also  comply  with  all  of  the  provisions  of  this 
chapter,  except  as  to  the  residence  of  membership ;  provided,  that 
no  such  society,  order  or  association  shall  be  authorized  to  trans- 
act business  within  this  state  unless  it  shall  be  shown  to  have 
actual  members,  in  good  standing,  of  at  least  one  thousand,  and 
at  least  one  million  dollars  of  insurance  in  force.  [39  G.  A.,  ch. 
270;  30  G.  A.,  ch.  62;  27  G.  A.,  ch.  47,  §  1 ;  26  G.  A.,  ch.  21,  §  12.] 

Sec.  1833  (C.  C.  5565).  Agents.  Such  association  shall  not  em- 
I)loy  paid  agents  in  soliciting  or  procuring  members,  except  in 
the  organization  or  building  up  of  subordinate  bodies,  or  granting 
members  inducements  to  procure  new  members.  [26  G.  A.,  ch. 
21,   §  13.] 

Mutual  benefit  associations  are  prohibited  from  employing  paid  agents, 
and  therefore  such  an  organization  cannot  after  it  is  formed,  ratify  the 
act  of  a  promoter  in  agi^eeing  that  an  agent  shall  have  a  commission  for 
procuring  members  for  the  organization.  First  National  Bank  v.  Church 
Federation,    129-268. 

Such  a  contract  being  expressly  forbidden,  the  association  is  not 
estopped  by  taking  advantage  of  the  services  of  such  agent  from  defend- 
ing against  his  claim  for  compensation.    JJml. 

The  statute  does  not,  however,  prohibit  others  than  the  association 
from  employing  and  paying  an  agent  to  procure  members,  and  held  that 
the  promoter  i)retending  to  act  as  general  superintendent  of  the  organiza- 
tion was  liable  to  the  agent  employed  by  him  in  the  name  of  the  associa- 
tion for  compensation  under  the  contract.     Ihid. 

Sec.  1834  (C.  C.  5566).  Changing  beneficiary.  No  contract  be- 
tween a  moiubor  and  his  beneficiary  lliat  the  beneficiary  or  any 
person  for  him  shall  pay  sucli  member's  assessment  and  dues,  or 
either  of  them,  shall  deprive  the  member  of  the  right  to  change 
the  name  of  the  beneficiary.     [Same,  §  14.1 

Where  the  parties  have  agreed  upon  a  mode  by  which  a  change  of 
beneficiary  may  be  effected,  the  change  can  be  made  in  that  mode  only, 
unless  by  subsequent  agreement,  assented  to  by  the  association,  a  differ- 
ent mode  is  substituted.    Modern  Woodmen  v.  Little,  114-109. 

Sec.  1835  (C.  C.  5567).  Meetings  in  other  states.  Any  such  as- 
sociation organized  under  the  laws  of  this  state  may  provide  for 
the  meetings  of  its  legislative  or  governing  body  in  any  other 
state,  territory  or  ]n"ovince  wherein  such  association  shall  have 
subordinate  bodies,  and  all  business  transacted  at  such  meetings 
shall  be  valid,  in  all  respects,  as  if  such  meetings  were  held  within 
this  state;  and  where  the  laws  of  any  such  association  provide 
for  the  election  of  its  officers  by  votes  to  be  cast  in  its  subordinate 
bodies,  the  voles  so  cast  in  its  subordinate  bodies  in  any  other 


Ch.  9,T.  TX  FRATERNAL    SOCIETIES  .  123 

state,  territory  or  province  shall  be  valid,  as  if  cast  within  this 
state.     [Same,  §  15.] 

Sec.  1836  (0.  C.  5568).  Proceedings  for  violations  of  statute. 
Any  such  association  refusing  or  neglecting  to  make  tlie  report  as 
provided  in  this  chapter  shall  be  excluded  from  doing  business 
within  this  state.  The  commissioner  of  insurance  must,  within  sixty 
days  after  failure  to  make  such  report,  or  in  case  any  such  asso- 
ciation shall  exceed  its  powers,  or  shall  conduct  its  business  fraud- 
ulently, or  shall  fail  to  comply  with  any  of  the  provisions  of  this 
chapter,  give  notice  in  writing  to  the  attorney-general,  who  shall 
immediately  commence  an  action  against  such  association  to  en- 
join the  same  from  carrying  on  any  business.  No  association  so 
enjoined  sliall  have  authority  to  continue  business  until  sucli  re- 
port shall  be  made,  or  overt  act  or  violation  (•oinj)hnii('(l  ol*  shall 
have  been  corrected,  nor  until  the  costs  of  such  aclion  be  |)aid  by 
it,  provided  the  court  shall  tlnd  that  such  association  was  in  de- 
fault as  charged;  whereupon  the  commissioner  of  insurance  shall 
reinstate  such  association  and  not  until  then  shall  such  association 
be  allowed  to  again  do  business  in  this  state.  Any  officer,  agent 
or  person  acting  for  any  such  association  or  subordinate  body 
thereof  within  this  state,  while  such  association  shall  be  so  en- 
joined or  prohibited  from  doing  business  pursuant  to  this  chap- 
ter, shall  be  deemed  guilty  of  a  misdemeanor,  anil  on  conviction 
tliereof,  shall  be  punished  by  a  fine  of  not  less  than  twenty-five 
dollars,  nor  more  than  two  hundred  dollars,  or  by  imprisonment 
in  the  county  jail  not  less  than  thirty  days  nor  more  than  one 
year,  or  by  both  such  fine  and  im^u'lsonnient,  in  the  disciH'tion  of 
the  court.     [Same,  §  16.] 

See  Sec.  1795  as  to  closing  assessment  associations. 

See.  1837  (C.  C.  5569).  Illegal  business— agents.  Any  person 
who  shall  act  witliin  this  state  as  an  officer,  agent  or  otherwise  for 
any  such  association  which  has  failed,  neglected  or  refused  to 
comply  Avith  or  which  has  violated  any  of  the  provisions  of  this 
chapter,  or  shall  have  failed  or  neglected  to  procure  from  the 
commissioner  of  insurance  proper  certificate  of  authority  to  trans- 
act business  as  provided  for  by  this  chr.pter,  shall  be  subject  to 
the  penalty  provided  in  the  last  preceding  section  for  the  misde- 
meanor therein  specified.      [Same,   §   17.] 

Sec.  1838  (C.  C.  5570).  False  representations  by  officers  or 
agents.  Any  officer,  agent  or  member  of  such  association,  who 
shall  obtain  any  money  or  property  belonging  thereto  by  any 
false  or  fraudulent  representations,  shall  be  fined  not  more  than 
five  hundred  dollars  and  costs,  and  stand  committed  until  such 
fine  and  costs  are  paid,  or  may  be  imprisoned  in  the  county  jail 
not  more  than  six  months.     [Same,  §  18.] 


124  FRATERNAL   SOCIETIES  Ch.  9,  T.  IX 

Sec.  1839  (C.  C.  5571).  Physician's  certificate.  Every  appli- 
cant for  membership  in  any  association  organized  in  this  state 
shall  first  be  examined  b}^  a  i3hysician  holding  a  certificate  from 
the  state  board  of  medical  examiners.     [Same,  §  19.] 

Sec.  1839-a  (C.  C.  5572).  ''Association"  defined.  The  term 
'' association"  when  used  in  this  act  shall  mean  any  society,  order 
or  association  organized  or  authorized  under  the  provisions  of 
chapter  nine  of  title  nine  o:^-  ilie  code.    (30  G.  A.,  ch.  61,  §  1.] 

Sec.  1839-b  (C.  C.  bbTl>).  Examination — assistants — compensa- 
tion. The  commissioner  of  insurance  may,  at  any  time  he  may 
deem  it  advisable,  either  in  person  or  by  his  legally  appointed 
representative,  make  an  examination  of  or  inquire  into  the  affairs 
of  any  fraternal  beneficiary  association  authorized  or  seeking  to 
be  authorized  to  transact  business  within  this  state,  provided  the 
examination  of  associations  organized  under-  the  laws  of  this 
state  shall  not  be  less  frequent  than  once  during  each  biennial 
period.  [39  G.  A.,  ch.  209,  ^  18 ;  38  G.  A.,  ch.  348,  ^  12;  30  G.  A., 
ch.  61,  §  2.] 

Sec.  1839-c  (C.  C.  5574).  Officers  to  assist — examiner  may  ad- 
minister oaths.  When  an  association  is  being  examined,  the  of- 
ficers, agents  or  employes  thereof  shall  produce  for  inspection  all 
books,  papers,  documents  or  other  information  concerning  the 
affairs  of  the  association  and  shall  otherwise  assist  in  the  examin- 
ation. The  commissioner  of  insurance  or  examiner  shall  have 
authority  to  administer  oaths,  and  may  summon  and  may  examine 
under  oath  any  officer,  employe,  representative  or  agent  of  any 
association  concerning  its  aff'airs  or  condition.  [30  G.  A.,  ch. 
61,  §  3.] 

Sec.  1839-d  (C.  C.  5575).  Revocation  or  suspension  of  author- 
ity. If  upon  investigation  or  examination,  it  shall  appear  to  the 
satisfaction  of  the  commissioner  of  insurance  that  any  association 
is  doing  an  illegal  or  unauthorized  business,  or  is  failing  to  fulfill 
its  contracts  with  its  members,  or  is  conducting  its  business  fraud- 
ulently, or  if  its  membership  or  the  amount  of  its  insurance  in 
force  has  been  reduced  below  the  legal  requirement,  or  should 
any  association  decline  or  refuse  to  submit  to  an  examination, 
the  commissioner  of  insurance  may  suspend  or  revoke  its  certifi- 
cate of  aut.horit.y  to  transact  business  within  this  state,  and  liav- 
ing  revoked  the  certificate  of  authority  of  any  association  or- 
ganized under  the  laws  of  this  state,  he  shall  at  once  report  tlie 
same  to  the  attorney-general,  who  shall  apply  to  the  district 
court  or  any  judge  thereof  for  the  appointnu^nt  of  a  receiver  to 
wind  up  the  affairs  of  such  association.     [30  G.  A.,  cli.  61,  §  4.] 

(See  1832.    Other  than  Life  1724-25-47-55,  1821cl. 

Sec.  1839-e  (C.  C.  5576).    Expenses — how  paid.    In  addition  to 


Ch.  9,  T.  IX  FRATERNAL   SOCIETIES  125 

the  compensation  of  the  assistants  the  commissioner  of  insurance 
or  examiner  and  assistants  shall  be  entitled  to  actual  and  neces- 
sary traveling',  hotel  and  other  expenses  while  conducting  examin- 
ations away  from  their  respective  places  of  residence,  the  same  to 
be  paid  b}'  the  treasurer  of  state  upon  warrants  drawn  by  the 
auditor  of  state,  bills  therefor  having  been  filed  under  oath  and 
approved  by  the  executive  council.  Such  expense  and  compensa- 
tion shall,  by  the  commissioner  of  insurance,  be  charged  to  and 
collected  from  the  associations  examined  and  should  any  associa- 
tion neglect  or  refuse  to  pay  the  same,  the  commissioner  of  insur- 
ance shall  at  once  revoke  its  certificate  of  authority  to  transact 
business  within  this  state.  [39  G.  A.,  ch.  209,  §  19 ;  30  G.  A.,  ch.  61, 
§  5.] 

Sec.   1839-f   (C.   C.  5577).     Soliciting  new  business — penalty. 

Any  officer,  manager,  agent  or  representative  of  any  association 
who  with  knowledge  that  its  certificates  [certificate]  of  authority 
has  been  suspended  or  revoked  or  that  it  is  doing  an  illegal,  un- 
authorized or  fraudulent  business,  solicits  insurance  for  said  as- 
sociation or  receives  applications  therefor,  or  does  any  other  act 
or  thing  toward  receiving  or  procuring  any  new  business  for  said 
association,  shall  be  deemed  guilty  of  a  misdemeanor  and  for 
every  such  act,  on  conviction  thereof,  shall  pay  a  fine  of  not  less 
than  one  hundred  nor  more  than  one  thousand  dollars,  or  be  im- 
prisoned in  the  count}^  jail  not  more  than  one  year,  or  be  pun- 
ished by  both  such  fine  and  imprisonment.     [30  G.  A.,  ch.  61,  §  6.] 

Sec.  1839-g  (C.  C.  5578).  Plan  of  consolidation  or  re-insurance 
— approval.  When  any  fraternal  beneficiary  association  shall  pro- 
pose to  consolidate  or  enter  into  any  re-insurance  contract  with 
any  other  association  or  organization,  it  shall  present  its  proposed 
plan  of  consolidation  or  re-insurance,  together  with  a  statement  of 
the  condition  of  its  affairs  to  the  commissioner  of  insurance  for  his 
approval.  Should  he  approve  the  plan,  the  same  shall  be  sub- 
mitted by  any  association  proposing  to  re-insure  its  risks  or 
transfer  its  business,  to  its  local  lodges  or  organizations  or  to  a 
regular  or  special  meeting  of  its  supreme  lodge  or  governing 
body  to  be  voted  upon,  such  notice  being  given  as  the  commis- 
sioner of  insurance  may  direct.  If,  in  the  judgment  of  the  com- 
missioner of  insurance,  it  is  deemed  advisable  he  may  also  re- 
quire the  plan  to  be  in  like  manner  submitted  to  the  association 
proposing  to  accept  or  re-insure  the  risks  of  any  other  associa- 
tion. In  case  two  or  more  associations  propose  to  consolidate, 
the  proposed  plan  of  consolidation  shall  be  submitted,  as  above 
provided,  to  all  the  associations  interested  in  such  consolidation. 
In  any  of  the  above  cases,  a  two-thirds  vote  of  all  of  the  mem- 
bers of  each  association  present  and  voting  shall  be  necessary 
to  an  approval  of  any  plan  of  consolidation  or  re-insurance,  and 
in  no  case  shall  proxies  be  voted.     On  presenting  to  the  com- 

2 


126 


FRATERNAL    SOCIETIES 
. .  / 


Ch.  9,  T.  IX 


missioner  of  insurance  satisfactory  proof  that  the  foregoing  pro- 
visions have  been  complied  with  and  that  the  required  number 
of  votes  have  been  cast  in  favor  of  the  proposed  plan,  he  shall 
issue  to  the  associations  an  order  to  the  effect  that  the  plan  has 
been  approved,  and  the  same  shall  be  in  force  and  effect  from 
and  after  the  date  of  such  order,  and  the  commissioner  of  insur- 
ance shall  direct  such  distribution  of  the  assets  of  any  such  asso- 
ciation or  associations  as  shall  be  just  and  equitable.  [30  G.  A., 
ch.  63,  §  1.] 

Sec.  1839-h  (C.  C.  5579).  Expenses,  how  paid.  All  expenses  or 
costs  incident  to  proceedings  under  the  provisions  of  this  act 
shall  be  paid  by  the  associations  interested.    [30  G.  A.,  ch.  63,  §  2.] 

Sec.  1839-i  (C.  C.  5580).  Penalty.  Any  officer,  director  or  man- 
ager of  aiw  association  violating  or  consenting  to  the  violation 
of  am^  of  the  provisions  of  this  act  shall  be  punished  by  a  fine  of 
not  less  than  one  thousand  dollars,  or  by  imprisonment  in  the 
county  jail  not  less  than  one  year,  or  by  both  such  fine  and  im- 
prisonment in  the  discretion  of  the  court.    [30  G.  A.,  ch.  63,  §  3.] 

Sec.  1839-j  (C.  0.  5581).  Mortuary  assessment.  No  fraternal 
beneficiary^  society  not  admitted  to  transact  business  within  this 
state  prioi'v  to  the  passage  of  this  act,  shall  be  incorporated  or 
given  a  permit  or  certificate  of  authority  to  transact  business 
within  this  state,  unless  it  shall  first  show  that  the  mortuar}^  as- 
sessment rates  provided  for  in  whatever  plan  of  business  it  has 
adopted,  including  the  issuance  of  term,  whole  life  or  limited 
payment  certificates  with  withdrawal  options,  are  not  lower  than 
is  indicated  as  necessary  by  the  following  mortality  table : 


[NATIONAL,  FRATERNAL  CONGRESS  MORTALITY  TABLE.] 


> 

1 
>> 

I 

> 

1 

"  1 

nS 

o  o 

>5 

2  <=> 

be 

<v 

early  p 
ability 
dying 

to 

3  "^ 

j3  .« 

early  p 
ability 
dying 

< 

Z 

z 

^       I 

< 

Z 

Z 

PH 

20.... 

100,000 

500 

.0050000 

1  60.... 

1  69,801 

1,588 

.0227504 

21....  1 

99,500  1 

501  1 

.0050352 

1  61 

68,213 

1,681 

.0246434 

22... . 

98,999 

502 

.0050708 

i  62.... 

66,532 

1,778 

.0267240 

23.... 

98,497 

503 

.0051068 

1  63.... 

64,754 

1,880 

.0290330 

24.. .. 

97,994 

505 

.0051535 

1  64.... 

62,874 

1,985 

.0315701 

25....  1 

97.489 

507 

.0052006 

1  65 

60,889 

2,094 

.0343904 

26.... 

96,982 

510 

.0052587 

66.... 

58,795 

2,206 

.0375202 

27. ... 

96,472 

-513 

.0053176 

67.... 

56,589 

2,308 

.0409620 

28.... 

95,957 

517 

.0053877 

68.... 

54,271 

2,430 

.0447753 

29.... 

95,442 

522 

.0054693 

69.... 

51,841 

2,539 

.0489767 

30.... 

94,920 

527 

.0055520 

70.... 

49,302 

2,645 

.0536489 

31.... 

94,393 

533 

.0056466 

71.... 

46,657 

2,744 

.0588122 

32.... 

93,860 

540 

.0057532 

72.... 

43,913 

2,832 

.0644912 

33.... 

93,320 

548 

.0058723 

73.... 

41,081 

2,909 

.0708113 

Ch.  9,  T.  IX 


FRATERNAL    SOCIETIES 


127 


NATIONAL   FRATERNAL   CONGRESS    MORTALITY    TABLE— Continued. 


> 

1 

1 

p  O 

1 
> 

1 

1  t4-l 

.c  o 
o 

'C/3 

3  — 

3"" 

early  p 
ability 
dyin 

0) 

be 

Is 

•gbC 

c  c 

arly  pr 
ability 
dying 

< 

;^ 

^ 

^ 

< 

y. 

^ 

(V 

34.... 

92,772 

557 

.0060040 

74 

38,172 

2,969 

.0777795 

35.... 

92,215 

567 

.0061487 

75.  .  .  . 

35,203 

3,009 

.0854957 

36.... 

91,648 

578 

.0063067 

76.... 

32,194 

3,026 

.0939927 

37.... 

91,070 

591 

.0064895 

77.... 

29,168 

3,016 

.1031010 

38.... 

90,479 

606 

.0066977 

78.... 

26,152 

2,977 

.1138345 

39.... 

89,873 

622 

.0069209 

79.... 

23,175 

2,905 

.1253506 

40.... 

89,251 

640 

.0071708 

80.... 

20,270 

2,799 

.1380858 

41.... 

88,611 

660 

.0074483 

81.... 

17,471 

2,659 

.1521951 

42.... 

87,951 

683 

.0077657 

82.... 

14,812 

2,485 

.1677694 

43.... 

87,268 

708 

.0081129 

83.... 

12,327 

2.280 

.1849599 

44.... 

86,568 

734 

.0084797 

84.... 

10,047 

2,050 

.2040410 

45.... 

85,826 

761 

.0088668 

85.... 

7,997 

1,800 

.2250844 

46.... 

85,065 

790 

.0092870 

86.... 

6,197 

1,539 

.2483460 

47.... 

84,275 

822 

.0097538 

87.... 

4,658 

1,277 

.2741520 

48.... 

83,453 

857 

.0102693 

88.... 

3,381 

1,023 

.3025732 

49.... 

82,596 

894 

.0108238 

89.... 

2.358 

788 

.3341815 

50.... 

81,702 

935 

.0114440 

90.... 

1,570 

579 

.3687898 

51.... 

80,767 

981 

.0121460 

91 

991 

404 

.4076690 

52.... 

79,786 

1,029 

.0128970 

92.... 

587 

264 

.4497445 

53.... 

78,757 

1,083 

.0137512 

93.... 

323 

161 

.4984520 

54.... 

77,674 

1,140 

.0146767 

94.... 

162 

89 

.5493827 

55.... 

76,534 

1,202 

.0157054 

95.... 

73 

44 

.6027397 

56.... 

75,332 

1,270 

.0168587 

96.... 

29 

19 

.6551724 

57.... 

74,062 

1,342 

.0181200 

97.... 

10 

7 

.7000000 

58.... 

72,720' 

1,418 

.0194994 

98.... 

3 

3 

1.0000000 

59.... 

71,302 

1,501 

.0210513 

Provided,  however,  that  this  section  shall  not  be  construed  so 
as  to  apply  to  or  affect  any  association  organized  solely  for  bene- 
volent purposes  and  whose  articles  of  incorporation,  constitution, 
rules,  or  by-laws,  provide,  that  at  the  time  of  the  admission  to 
membership,  each  member  when  joining  shall  belong  to  one  oc- 
cupation or  guild. 

The  certificate  written  by  any  domestic  fraternal  beneficiary 
association  operating  under  the  provisions  of  the  foregoing  mor- 
tality table  shall  be  valued  in  the  same  manner  as  provided  in 
section  seventeen  hundred  seventy-four  of  the  code,  except  that 
such  valuation  shall  be  based  upon  the  foregoing  mortality  table 
and  four  per  cent  interest.  [38  G.  A.,  ch.  227;  37  G.  A.,  ch.  193, 
§  1;34G.A.,  ch.  18,  §19;32G.A.,  ch.  80.1 

See.  1839-k  (C.  C.  5582).  Acquisition  of  real  estate— erection 
of  building — conditions.  Any  fralemal  Ix'iicficiai'y  society,  order 
or  association  organized  under  the  laws  of  this  state,  accumulating 
money  to  be  held  in  trust  for  the  purpose  of  the  fulfillment  of  its 


128  FRATERNAL    SOCIETIES  Ch.  9,  T.  IX 

certificates  or  contracts,  shall  be  permitted  to  invest  not  to  exceed 
ten  per  cent,  of  the  aggregate  amount  of  such  accumulation  in 
such  real  estate  in  this  state  as  is  necessary  for  its  accommoda- 
tion as  a  home  office,  and  in  the  purchase  or  erection  of  any 
building  for  such  purpose  it  may  add  thereto  rooms  for  rent; 
provided  that  before  any  association  shall  invest  any  of  its  funds 
in  accordance  with  the  provisions  of  this  subdivision  it  shall  first 
obtain  the  consent  of  the  executive  council.  Any  company  or 
association  so  investing  its  funds  shall  convey  the  real  estate  thus 
acquired  to  the  commissioner  of  insurance  by  deed,  such  property 
to  be  held  by  him  in  trust  for  the  benefit  of  the  members  of  such 
association,  the  value  thereof  to  be  determined  from  time  to  time 
by  the  commissioner  of  insurance.  Provided,  that  nothing  in  this 
act  shall  be  construed  to  permit  the  officials  or  board  of  directors 
of  such  society,  order  or  association  to  make  such  investment  with 
out  authority  specifically  granted  by  the  said  society,  order  or  as- 
sociation through  its  grand  or  supreme  lodge  or  convention.  [37 
G.  A.,  ch.  379;  32  G.  A.,  ch.  87.] 

Sec.  1839-1  (C.  C.  5583).  Investment  af  funds — securities  de- 
posited. Any  fraternal  beneficiary  society,  order  or  association 
organized  under  the  laws  of  this  state,  accumulating  money  to 
be  held  in  trust  for  the  purpose  of  the  fulfillment  of  its  certificates 
or  contracts,  shall  invest  such  accumulations  in  the  following  se- 
curities and  no  other: 

1.  Bonds  of  the  United  States. 

2.  Bonds  of  this  or  any  other  state,  when  such  bonds  are  at  or  above 
par. 

3.  Bonds  or  other  evidences  of  indebtedness  of  any  county,  city,  town 
or  school  district  within  the  state  or  any  other  state,  or  drainage  bonds 
of  any  drainage  district  in  the  state  of  Iowa  where  such  bonds  or  other 
evidences  of  indebtedness  are  issued  by  authority  of  and  according  to  law 
and  bearing  interest,  and  are  approved  by  the  executive  council. 

4.  Bonds,  mortgages  and  other  interest  bearing  securities  being  first 
liens  upon  real  estate  within  this  state  or  any  other  state,  worth  at 
least  double  the  amount  loaned  thereon  and  secured  thereby  exclusive 
of  improvements,  or  two  and  one-half  times  such  amount  including  the 
improvements  thereon,  if  such  improvements  are  constructed  of  brick 
or  stone;  but  no  such  improvements  shall  be  considered  in  estimating  the 
value  unless  the  owner  shall  contract  to  keep  the  same  insured  in  some 
reliable  fire  insurance  company  or  companies  authorized  to  do  business  in 
the  state,  during  the  life  of  the  loan,  in  a  sum  at  least  double  the  excess 
of  the  loan  above  one-half  the  value  of  the  ground  exclusive  of  the  im- 
provements, the  insurance  to  be  made  payable  in  case  of  loss  to  the  com- 
pany or  association  investing  its  funds,  as  its  interest  may  appear  at  the 
time  of  loss. 

All  such  securities  shall  be  deposited  with  the  commissioner  of 
insurance  subject  to  his  approval,  and  shall  remain  with  him  until 
withdrawn  in  accordance  with  the  provisions  of  tliis  act.  Any 
fraternal  beneficiary  society,  order  or  association  receiving  pay- 
ments or  partial  payments  on  any  securities  deposited  with  the 


Ch.  9,  T.  IX  FRATERNAL    SOCIETIES  129 

commissioner  of  insurance,  shall  notify  him  of  such  fact  giving 
the  amount  and  date  of  payment  within  fifteen  days  after  such 
payment  shall  have  been  made.  The  officers  of  any  societ}^,  order 
or  association  which  fails  to  report  the  receipt  of  payments  or 
partial  payments  as  above  provided  shall  be  liable  to  fine  in  dou- 
ble the  amount  collected  and  not  reported  within  the  time  and 
in  the  manner  above  specified. 

Any  society,  order  or  association  required  to  make  a  deposit 
with  the  commissioner  of  insurance  as  herein  contemplated,  shall 
at  the  time  of  making  such  deposit,  designate  by  what  provisions 
of  its  articles  of  incorporation  or  laws  such  fund  is  accumulated 
and  upon  making  request  for  withdrawal  of  an}^  funds  shall  desig- 
nate for  what  purpose  such  withdrawal  is  desired. 

Any  society,  order  or  association,  may  at  any  time  change  its 
securities  on  deposit  by  depositing  a  like  amount  in  other  securi- 
ties of  the  same  character  and  the  commissioner  of  insurance  shall 
permit  a  withdrawal  of  the  same  upon  satisfactory  proof  in  writ- 
ing filed  with  him  that  they  are  to  be  used  for  the  purpose  for 
which  they  were  originally  deposited. 

The  commissioner  of  insurance  shall  have  authority  to  suspend 
or  revoke  the  certificate  of  authority  to  any  society,  order  or 
association  failing  to  comply  with  any  of  the  provisions  of  this 
act  or  for  violating  the  same. 

Nothing  in  this  section  shall  be  construed  to  apply  to  any  as- 
sociation organized  solely  for  benevolent  purposes  and  whose 
articles  of  incorporation,  constitution,  rules  or  by-laws  provide 
that,  at  the  time  of  the  admission  to  membership,  each  mem- 
ber, when  joining,  shall  belong  to  one  certain  occupation,  guild, 
profession  or  religious  denomination;  nor  shall  the  provisions  of 
this  chapter  be  construed  to  apply  to  organizations,  societies,  or 
associations,  the  membership  of  which  consists  of  female  mem- 
bers of  the  families  of  members  of  any  one  occupation,  guild,  pro- 
fession or  religious  denomination ;  nor  shall  the  provisions  of  this 
chapter  be  construed  to  apply  to  auxiliary  societies  or  associations 
the  membership  of  which  consists  of  female  members  of  the  fam- 
ilies of  members  of  any  one  occupation,  guild,  profession  or  re- 
ligious denomination.  '[37  G.  A.,  ch.  193,  §  2;  34  G.  A.,  ch.  82,  § 
1;  32  G.  A.,  chs.  88-89.] 

Other  than  Life  1699.     Life  1778-91-1806. 

Sec.  1839-m  (C.  0.  5584).  Receiver  on  application  of  attorney 
general  only.  No  application  for  the  appointment  of  a  receiver, 
for  any  fraternal  beneficiary  society,  or  branch  thereof,  shall  be 
entertained  by  anv  court  in  this  state,  unless  same  is  made  by  the 
attorney  general.'  [36  G.  A.,  S.  F.  491,  §  1.] 


130  FRATERNAL.  SOCIETIES  Ch.  9,  T.  IX 

Sec.  1839-11  (C.  C.  5585).  When  proceedings  may  be  commenced. 

No  such  proceedings  shall  be  commenced  by  the  attorney  general 
against  any  fraternal  beneficiary  society  until  the  commissioner  of 
insurance  has  first  made  an  examination  of  such  fraternal  benefi- 
ciary society,  and  completed  a  report  upon  its  affairs,  and  not  until 
after  notice  has  been  duly  served  on  the  chief  executive  officers  of 
the  society,  and  a  reasonable  opportunity  given  to  it,  on  a  date 
to  be  named  in  said  notice,  to  show  cause  why  such  proceedings 
should  not  be  commenced.     [36  G.  A.,  S.  F.  491,  §  2.] 

Sec.  1839-0  (0.  0.  5586).  Examinations  and  statements  not 
public.  Pending,  during  or  after  an  examination  or  investigation 
of  such  fraternal  beneficiary  society,  the  commissioner  of  insur- 
ance shall  make  public  no  financial  statement,  report  or  finding, 
nor  shall  he  permit  to  become  public  any  financial  statement,  re- 
port or  finding  affecting  the  status,  standing  or  rights  of  any  such 
society  until  a  cop}^  of  such  examination  and  investigation  shall 
have  been  served  upon  such  society,  at  its  home  office,  nor  until 
such  society  shall  have  been  afforded  a  reasonable  opportunity  to 
answer  such  financial  statement,  i-nvestigation,  report  or  finding, 
and  to  make  such  showing  in  connection  therewith,  as  it  may  de- 
sire.    [36  G.  A.,  S.  F.  491,  §  3.] 

CHAPTER  302,  38th  G.  A. 

PROVIDING  FOR  TRANSFORMATION  TO  LEGAL  RESERVE  LEVEL 

PREMIUM  COMPANIES. 

AN  ACT  relating  to  fraternal  beneficiary  societies,  and  providing  a 
method  whereby  such  fraternal  beneficiary  societies  may  be  reincorpo- 
rated as  a  legal  reserve  level  premium  life  insurance  company. 

Be  It  Enacted  hy  the  General  AssemUij  of  the  State  of  Iowa: 

Section  1  (C.  C.  5587).  Any  existing  fraternal  beneficiary  so- 
ciety may  amend  its  articles  of  incorporation  and  by-laws  in  such 
a  manner  as  to  transform  itself  into  a  legal  reserve  level  premium 
company  doing  business  either  as  a  mutual  or  stock  company, 
but  only  after  complying  with  the  following  provisions : 

AVhenever  any  such  society  shall  propose  to  transform  itself 
into  a  legal  reserve  level  premium  company  as  herein  provided,  it 
shall  file  with  the  commissioner  of  insurance,  its  proposed  articles 
and  by-laws,  its  plan  of  transformation,  setting  forth  in  detail  the 
terms  and  conditions  of  such  transformation  and  also  the  method 
by  which  it  proposes  to  protect  the  interests  of  its  membership. 
The  commissioner  may  proceed  to  hear  and  determine  such  peti- 
tion without  notice,  or,  if  he  deems  it  necessary  that  such  notice 
should  be  given  in  order  to  conserve  the  interests  of  the  member- 
ship, he  shall  require  the  society  to  first  notify,  by  mail,  all  of  the 
members  of  such  society  of  the  pendency  of  such  petition,  the 


Ch.  9,  T.  IX  FRATERNAL    SOCIETIES  131 

contents  of  such  notice  to  be  determined  by  the  commissioner. 
When  notice  shall  have  been  given,  as  above  provided,  any  mem- 
ber of  said  society  shall  have  the  right  to  appear  before  said  com- 
missioner and  be  heard  with  reference  to  said  petition.  The 
commissioner  may  also  make  such  examination  into  the  affairs 
and  conditions  of  the  society  as  he  deems  proper,  and  shall  have 
power  to  summon  and  compel  the  attendance  and  testimony  of 
witnesses,  and  the  production  of  books  and  papers,  and  may  ad- 
minister oaths.  If  satisfied  that  the  interests  of  the  membership 
of  said  society  are  properly  protected  and  that  no  reasonable 
objection  to  said  petition  exists,  the  commissioner  may  authorize 
in  writing,  such  transformation,  or  may  first  require  such  modi- 
fication thereof  as  may  seem  to  him  necessary  for  the  best  inter- 
ests of  such  membership;  and  the  said  commissioner  shall  make 
such  order  and  disposition  of  the  assets  of  any  such  society  as  in 
his  judgment  may  be  just  and  equitable. 

Sec.  2  (C.  C.  5588-5589).  The  commissioner  shall  require  the 
plan  of  transformation  to  be  submitted  to  the  supreme  governing 
bod}^  of  such  society,  to  be  voted  upon.  AVhen  submitted,  it  shall 
be  either  at  a  regular  meeting  of  said  supreme  governing  body 
or  at  a  special  meeting  of  same  called  for  that  purpose.  A  notice 
of  said  special  meeting,  in  the  form  approved  by  the  insurance 
commissioner,  shall  be  given  in  accordance  with  the  requirement 
of  the  by-laws  of  such  society.  When  so  submitted,  a  majority 
vote  of  the  said  supreme  governing  body  present  and  voting,  as 
authorized  by  its  articles  of  incorporation  and  by-laws,  shall  be 
necessary  to  an  approval  of  such  plan  of  transformation;  and 
no  proxies  shall  in  any  case  be  voted. 

If  the  supreme  governing  body  approves  the  plan  of  trans- 
formation, the  board  of  directors  or  other  managing  body  of  such 
society  shall  submit  the  plan  to  a  referendum  vote  of  the  mem- 
bers of  such  society  under  such  regulations  as  may  be  prescribed 
by  the  commissioner  of  insurance  and  if  the  result  of  such  vote 
shall  show  that  the  majority  of  the  members  of  such  society  has 
voted  to  repeal  the  action  of  the  supreme  governing  body,  then 
the  same  shall  be  considered  as  repealed  by  such  society  and 
shall  be  null  and  of  no  effect.  Any  such  plan  of  transformation 
submitted  to  the  supreme  governing  body  as  herein  contemplated, 
must  first  have  been  approved  by  the  commissioner  of  insurance ; 
and  the  result  of  said  vote  must  be  filed  with  such  commissioner 
and  be  by  him  determined  before  any  transformation  shall  be 
so  effective.  No  such  transformation  shall  take  place  until  after 
its  plan  has  been  approved  by  the  commissioner,  either  with  or 
without  a  hearing  as  herein  provided,  nor  until  such  approved 
plan  has  been  adopted  by  a  majority  vote  of  the  board  of  direc- 
tors or  board  of  trustees  of  such  society ;  nor,  if  submitted  to  the 
suprehie  governing  body,  until  such  approved  plan  lias  also  been 


132  FRATERNAL    SOCIETIES  Cli.  9,  T.  IX 


adopted  by  a  majority  vote  of  the  said  supreme  governing  body 
present  and  voting. 

Sec.  3  (0.  C.  5590).  Any  such  society  so  transformed,  shall  in- 
cur the  obligations  and  enjoy  the  benefits  thereof  the  same  as 
though  originally  thus  incorporated,  and  such  corporation,  under 
its  charter  as  thus  amended,  shall  be  continuation  of  such  original 
corporation,  and  the  officers  thereof  shall  serve  through  their 
respective  terms  as  provided  in  the  original  charter,  but  their 
successors  shall  be  elected  and  serve  as  in  such  amended  articles 
provided ;  but  such  amendment  or  re-incorporation  shall  not  affect 
existing  suits,  claims  or  contracts.  Any  such  fraternal  benefi- 
ciary society  taking  advantage  of  this  section,  to  reorganize  into 
a  stock  company  shall  offer  to  each  member  of  said  society  the 
privilege  of  subscribing  for  and  purchasing  his  or  her  proportion- 
ate amount  of  capital  stock. 

Sec.  4  (C.  C.  5591).  The  existing  certificates  of  membership 
of  any  fraternal  beneficiary  society  which  shall  have  transformed 
itself  into  a  legal  reserve  level  premium  life  insurance  company, 
in  conformity  with  the  provisions  of  this  section  shall  be  valued 
as  follows: 

(a)  Certificates  on  which  rates  of  contribution  are  not  on  the 
basis  of  any  table  of  mortality,  valued  as  j^ear  renewable  term 
policies  according  to  the  standard  of  valuation  of  life  insurance 
policies  prescribed  by  the  laws  of  this  state. 

(b)  Certificates  on  which  the  rates  of  contribution  are  based 
upon  a  standard  table  of  mortality  and  specified  rate  of  interest, 
valued  in  accordance  with  such  standard. 

The  reserve  so  ascertained  shall  be  held  as  a  liability  by  the 
company  in  its  annual  statement  rendered  to  the  insurance  de- 
partment. 


Miscellaneous   Sections 

FIRST  SECTION 

(C.  0.  5497).  From  and  after  the  taking  effect  of  this  act, 
no  insurance  company  or  association  organized  under  the  statutes 
of  Iowa  to  transact  an  insurance  business,  shall  invest  its  capital, 
surplus  funds  or  other  assets  in,  or  loan  the  same  on,  property 
owned  by  any  officer  or  director  of  such  company  or  by  any  of 
the  immediate  members  of  the  family  of  any  such  officer  or 
director;  neither  shall  any  such  officer  or  director  gain  through 
the  investment  of  funds  of  any  such  company.  [38  G.  A.,  Ch. 
348,  §  13.] 

SECOND   SECTION 

37  G.   A..    Ch.   180. 

RECIPRlOCAL    OR    INTER-INSURANCE    CONTRACTS    AUTHORIZED. 

AN  ACT  authorizing  and  regulating  the  exchange  of  reciprocal  or  in- 
ter-insurance contracts  among  individuals,  partnerships  and  cor- 
porations; empowering  corporations  to  enter  into  such  contracts; 
regulating  process  in  suits  on  such  contracts;  providing  for  fees,  taxes 
and  licenses;  and  providing  penalities. 

Section  1  (0.  C.  5708).  Reciprocal  contracts  authorized.  In- 
dividual, partnerships  and  corporations,  including  independent 
school  districts  and  municipal  corporations,  of  this  state,  hereby 
designated  subscribers,  are  hereby  authorized  to  exchange  re- 
ciprocal or  inter-insurance  contracts  with  each  other,  and  with 
individuals,  partnerships  and  corporations  of  other  states,  terri- 
tories, districts  and  countries,  providing  insurance  among  them- 
selves from  any  loss  which  may  be  insured  against  under  the  law, 
except  life  insurance. 

Sec.  2  (C.  C.  5709).  Execution  of  contract — place  of  business 
of  attorney.  Such  contracts  may  be  executed  by  an  attorney 
agent  or  other  representative  herein  designated  attorney,  duly 
authorized  and  acting  for  such  subscribers  under  powers  of  at- 
torney, and  such  attorney  mav  be  a  corporation.  The  principal 
office  of  such  attorney  shall  be  maintained  at  such  place  as  is 
designated  by  the  subscribers  in  the  power  of  attorney ;  provided 
that,  where  the  principal  office  of  such  attorney  is  located  in  an- 
other state,  the  commissioner  of  insurance  shall  not  issue  a  cer- 
tificate of  authority,  or  license,  as  provided  in  this  act  unless  such 
attorney  shall  hold  a  license  or  certificate  of  authority  from  the 
insurance  department  of  such  other  state. 

Sec.  3  (C.  C.  5710).  Preliminary  showing.  Such  subscribers  so 
contracting  among  themselves,  shall,  through  their  attorney,  file 
with  the  commissioner  of  insurance  a  declaration  verified  by  the 
oath  of  such  attorney,  or,  where  such  attorney  is  a  corporation,  by 
the  oath  of  the  duly  authorized  officers  thereof,  setting  forth: 


134  MISCELLANEOUS   SECTIONS 

(a)  The  name  of  the  attorney  and  the  name  or  designation 
under  which  such  contracts  are  issued,  which  name  or  designa- 
tion shall  not  be  so  similar  to  any  name  or  designation  adopted 
by  any  attorney  or  by  any  insurance  organization  in  the  United 
States  prior  to  the  adoption  of  such  name  or  designation  by 
the  attorney,  as  to  confuse  or  deceive, 

(b)  The  location  of  the  principal  office. 

(c)  The  kind  or  kinds  of  insurance  to  be  effected. 

(d)  A  copy  of  each  form  of  policy,  contract  or  agreement 
under  or  by  which  insurance  is  to  be  effected. 

(e)  A  copy  of  the  form  of  power  of  attorney  under  which 
such  insurance  is  to  be  effected. 

(f)  That  applications  have  been  made  for  indemnity  or  in- 
surance upon  at  least  one  hundred  separate  risks  aggregating: 
not  less  than  one  and  one-half  million  dollars  represented  by 
executed  contracts  or  bona  fide  applications  to  become  concur- 
rentlv  effective;  or,  in  case  of  employers'  liability  or  work- 
men's compensation  insurance,  coverina:  a  total  payroll  of  not 
less  than  two  and  one-half  million  dollars. 

(g")  That  there  is  in  the  possession  of  such  attorney  anrl 
available  for  the  pavment  of  losses,  assets  amounting  to  not 
less  than  fiftv  thousand  dollars,  and,  in  case  of  employers'  lia- 
bility or  workmen's  compensation  insurance,  that  such  assets 
shall  amount  to  not  less  than  one  hundred  thousand  dollars. 

(h)  A  financial  statement  under  oath  in  form  prescribed  for 
the  annual  statement. 

(i)  The  instrument  authorizing  service  of  process  as  provided 
for  in  this  act. 

(j)     Certificate  showing  deposits  of  funds. 

Sec.  4  (C.  C.  5711).  Actions — venue — service  of  process — judsr- 
ment.  Con  currently  with  the  filinsf  of  the  declaration  provided 
for  by  the  terms  of  section  3  of  this  act,  the  attorney  shall  file 
with  the  commissioner  of  insurance  an  instrument  in  writing; 
executed  bv  him  for  said  subscribers,  conditioned  that,  upon  the 
issuance  of  certificate  of  authority  provided  for  in  this  act,  action 
may  be  brought  in  the  county  in  which  the  property  or  person 
insured  thereunder  is  located,  and  that  service  of  process  may 
be  had  upon  the  commissioner  of  insurance  in  all  suits  in  this 
state  arising  out  of  such  policies,  contracts  or  agreements,  which 
service  shall  be  valid  and  binding  upon  all  subscribers  exchang- 
ing at  any  time  reciprocal  or  inter-insurance  contracts  through 
such  attorney.    Three  copies  of  such  process  shall  be  served  and 


MISCELLANEOUS   SECTIONS  i:"'.5 

the  commissioner  of  insurance  shall  file  one  copy,  forward  one 
copy  to  said  attorney,  and  return  one  copy  with  his  admission  of 
service.  A  judgment  rendered  in  any  such  case  where  service 
of  process  has  been  so  had  upon  the  commissioner  of  insurance, 
shall  be  valid  and  binding  against  any  and  all  such  subscribers 
as  their  interests  appear  and  such  judgment  may  be  satisfied  out 
of  the  funds  in  the  possession  of  the  attorney  belonging  to  such 
subscribers. 

Sec.  5  (C.  C.  5712).  Reports — limitations  on  risks.  There  shall 
be  filed  with  the  commissioner  of  insurance  by  such  attorney 
whenever  the  commissioner  of  insurance  shall  so  require,  a  state- 
ment under  oath  of  such  attorney  showing  the  maximum  amount 
of  indemnity  upon  a  single  risk,  and,  except  as  to  workmen's  com- 
l")ensation  insurance,  no  subscriber  shall  assume  on  any  single 
risk  an  amount  greater  than  ten  per  cent  of  the  net  worth  of 
such  subscriber. 

Sec.  6  (C.  C.  5713).  Standard  of  solvency.  There  shall  at  all 
times  be  maintained  as  assets  a  sum  in  cash,  or  in  securities  of 
the  kind  designated  by  the  laws  of  the  state  where  the  principal 
office  is  located  for  the  investment  of  funds  of  insurance  com- 
panies, equal  to  one  hundred  per  cent  of  the  net  unearned 
premiums  or  deposits  collected  and  credited  to  the  accounts  of 
subscribers  or  assets  equal  to  fifty  per  cent  of  the  net  annual 
deposits  collected  and  credited  to  the  accounts  of  subscribers 
on  policies  having  one  year  or  less  to  run  and  pro  rata  on 
those  for  longer  periods;  in  addition  to  which  there  shall  be 
maintained  in  cash,  or  in  securities,  assets  sufficient  to  discharge 
all  liabilities  on  all  outstanding  losses  arising  under  policies 
issued,  the  same  to  be  calculated  in  accordance  with  the  laws 
of  the  state  relating  to  similar  reserves  for  companies  insuring 
similar  risks.  Provided  that,  where  the  assets  on  hand  available 
for  the  payment  of  losses  other  than  determined  losses,  shall  not 
equal  two  hundred  thousand  dollars,  all  liability  for  each  deter- 
mined loss  or  claim  deferred  for  more  than  one  year,  shall  be 
provided  for  by  a  special  deposit  in  a  trust  company  of  the 
state  in  which  the  principal  office  is  located,  to  be  used  in  pay- 
ment of  compensation  benefits  for  disability ;  such  deposit  to  be 
a  trust  fund  and  applicable  only  to  the  purposes  stated,  or  such 
liability  may  be  reinsured  in  authorized  companies  with  a  surplus 
of  at  least  two  hundred  thousand  dollars.  For  the  purpose  of 
said  reserves,  net  deposits  shall  be  construed  to  mean  the  advance 
paj^ments  of  subscribers  after  deducting  therefrom  the  amount 
specifically  provided  in  the  subscriber's  agreement  for  expenses. 
If  at  any  time  the  assets  so  held  in  cash  or  such  securities  shall 
be  less  than  required  above,  or  less  than  one  hundred  thousand 
dollars  as  to  employers'  liability  or  workmen's  compensation 
insurance,  or  less  than  fifty  thousand  dollars  as  to  other  classes 


136  MIJ^CELLANEOUS   SECTIONS 

of  insurance,  the  subscribers  or  their  attorney  for  them  shall 
make  up  the  deficiency  Avithin  thirty  claj^s  after  notice  from  the 
commissioner  of  insurance  so  to  do.  In  computing  the  assets 
required  by  this  section,  the  amount  specified  in  subdivision  (g), 
section  3,  shall  be  included. 

See.  7  (0.  0.  5714).  Annual  financial  report — examination  by 
commissioner.  Such  attorney  shall,  within  the  time  limited  for 
filing  the  annual  statement  by  insurance  companies  transacting 
the  same  kind  of  business,  make  a  report,  under  oath,  to  the 
commissioner  of  insurance  for  each  calendar  year,  showing  the 
financial  condition  of  affairs  at  the  office  where  such  contracts 
are  issued  and  shall,  at  any  and  all  times,  furnish  such  additional 
information  and  reports  as  may  be  required.    Provided,  however, 

•  that  the  attorney  shall  not  be  required  to  furnish  the  name  and 
addresses  of  any  subscribers  except  in  case  of  an  unpaid  final 
judgment.  The  business  affairs,  records  and  assets  of  any  such 
organization  shall  be  subject  to  examination  by  the  commissioner 
of  insurance  at  any  reasonable  time,  and  such  examination  shall 
be  at  the  expense  of  the  organization  examined. 

Sec.  8  (C.  C.  5715).  Powers,  extension  of.  Any  corporation 
now  or  hereafter  organized  under  the  laws  of  this  state  shall,  in 
addition  to  the  rights,  powers  and  franchises  specified  in  its 
articles  of  incorporation,  have  full  power  and  authority  to 
exchange  insurance  contracts  of  the  kind  and  character  herein 
mentioned.  The  right  to  exchange  such  contracts  is  hereby 
declared  to  be  incidental  to  the  purposes  for  which  such  corpo- 
rations are  organized  and  as  fully  granted  as  the  rights  and 
powers  expressly  conferred. 

Sec.  9  (C.  C.  5716).  Certificate  of  authority.  Upon  compli- 
ance with  the  requirements  of  this  act,  the  commissioner  of 
insurance  shall  issue  a  certificate  of  authority  or  a  license  to  the 
attorney,  authorizing  him  to  make  such  contracts  of  insurance, 
which  license  shall  specify  the  kind  or  kinds  of  insurance  and 
shall  contain  the  name  of  the  attorney,  the  location  of  the  prin- 
cipal office  and  the  name  or  designation  under  which  such 
contracts  of  insurance  are  issued.  Such  license  shall  be  renewed 
annually  upon  a  showing  that  the  standard  of  solvency  required 

*  herein  has  been  maintained  and  that  all  fees  and  taxes  required 
have  been  paid. 

Sec.  10  (C.  C.  5717).  Violations — penalty.  Any  attorney  who 
shall  exchange  any  contracts  of  insurance  of  the  kind  and 
character  specified  in  this  act,  or  any  attorney  or  representative 
of  such  attorney,  who  shall  solicit  or  negotiate  any  applications 
for  the  same  without  the  attorney  having  first  complied  witli 
the  foregoing  provisions,  shall  be  deemed  guilty  of  a  misdemeanor 
and,  upon  conviction,  shall  be  subject  to  a  fine  of  not  less  than 


MISCELLANEOUS   SECTIONS  137 

one  liundred  dollars  nor  more  than  five  hundred  dollars.  For 
the  purpose  of  organization  and  upon  issuance  of  permit  by  the 
commissioner  of  insurance,  powers  of  attorney  and  applications 
for  such  contracts  may  be  solicited  without  compliance  with  the 
provisions  of  this  act,  but  no  attorne}^,  agent  or  other  person 
shall  make  any  such  contracts  of  indemnity  until  all  of  the 
provisions  of  this  act  shall  have  been  complied  with. 

Sec.  11  (0.  C.  5718).    Refusal  or  revocation  of  certificate.    In 

addition  to  the  foregoing  penalties  and  where  not  otherwise 
provided,  the  penaltj^  for  failure  or  refusal  to  comply  with  any 
of  the  terms  and  provisions  of  this  act,  upon  the  part  of  the 
attornej^,  shall  be  the  refusal,  suspension  or  revocation  of  certifi- 
cate of  authority  or  license  by  the  commissioner  oE  insurance  and 
the  public  announcement  of  his  act,  after  due  notice  and  oppor- 
tunity for  hearing  has  been  given  such  attorney  so  that  he  may 
appear  and  show  cause  why  such  action  should  not  be  taken. 

Sec.  12  (C.  C.  5719).  Attorney  to  give  bond — amount.  Where 
the  principal  office  of  the  attorney  in  fact  is  located  In  this  state, 
he  shall  give  bond  to  the  subscribers  in  such  sum  as  the  advisory 
committee  of  the  exchange  shall  deem  sufficient,  not  less,  hoAV- 
ever,  than  in  the  sum  of  ten  thousand  dollars,  which  bond,  after 
being  approved  by  the  advisory  committee  and  by  the  commis- 
sioner of  insurance,  shall  be  deposited  with  the  commissioner 
of  insurance  as  security  for  the  faithful  performance  of  the 
duties  of  the  attorney  handling  the  funds  of  the  subscribers. 
Should  the  commissioner  of  insurance  consider  the  surety  on 
said  bond,  or  the  amount  thereof,  insufficient,  he  may  require 
additional  security  or  an  increase  in  the  amount  of  the  bond. 
If  such  additional  security  or  increase  be  not  furnished  within 
thirtj^  days  after  notice  to  furnish  the  same,  the  commissioner 
of  insurance  may  revoke  the  certificate  of  authority.  Where 
the  principal  office  of  the  attorney  is  located  in  another  state, 
there  shall  be  filed  with  the  commissioner  of  insurance,  in  con- 
nection with  the  declaration,  provided  for  by  section  3  hereof, 
certified  copies  of  all  such  bonds  given  by  such  attorney  as 
securitj^  for  the  funds  of  subscribers. 

Sec.  13  (C.  C.  5720).  Fees  and  taxes.  In  lieu  of  all  other 
taxes,  licenses,  charges  and  fees  whatsoever,  such  attorney  shall 
pay  annually  on  account  of  the  transaction  of  such  business  in 
this  state,  the  same  fees  as  are  paid  by  mutual  companies  trans- 
acting the  same  kind  of  business,  and  an  annual  tax  of  two  and 
one-half  per  cent  upon  the  gross  premiums  or  deposits  collected 
from  subscribers  in  this  state  during  the  preceding  calendar  year, 
after  deducting  therefrom  returns,  or  cancellations,  'considera- 
tions for  reinsurances,  and  all  amounts  returned  to  subscribers 
or  credited  to  their  accounts  as  savings. 


13S  '  MISCELLANEOUS   SECTIONS 

Sec.  14  (C.  C.  5721).  Form  of  contract.  The  attorney  may 
insert  in  any  form  of  policy  prescribed  by  the  laws  of  this  state 
any  provisions  or  conditions  required  by  the  plan  of  reciprocal 
or  inter-insurance,  provided  the  same  shall  not  be  inconsistent 
with  or  in  conflict  with  any  law  of  this  state.  Such  policy,  in 
lieu  of  conforming  to  the  language  and  form  prescribed  by  such 
la\v,  shall  be  held  to  conform  thereto  in  substance  if  such  policy 
includes  a  provision  or  endorsement  reciting  that  the  polic.y  shall 
be  construed  as  if  in  the  language  and  form  prescribed  by  such 
law.  An3^  such  policy  or  endorsement  shall  first  be  filed  with  and 
approved  by  the  commissioner  of  insurance. 

Sec.  15  (C.  C.  5722).  Reinsurance.  Such  attorney  shall  not 
effect  am'  reinsurance  on  risks  in  this  state  unless  the  insurance 
carrier  granting  such  reinsurance  shall  be  licensed  in  this  state. 

Sec.  16  (C.  C.  5723).  Laws  applicable.  Except  as  herein 
provided,  the  making  of  contracts  as  herein  provided  for  and 
such  other  matters  as  are  properly  incident  thereto,  shall  not  be 
subject  to  the  laws  of  this  state  relating  to  insurance  unless  they 
are*  therein  specifically  mentioned. 


Sec.   360    (C.    C.   8433).     When   guaranty   company   may  be 
accepted  as  surety — premium — not  applicable  to  criminal  cases. 

Whenever  an}^  person  who  now  or  hereafter  may  be  required  or 
permitted  to  give  a  bond  applies  for  the  c^.pproval  thereof,  any 
officer  or  body  who  is  now  or  shall  hereafter  be  required  to 
approve  the  sufficiency  of  such  bond  shall  accept  and  approve  the 
same,  whenever  its  conditions  are  guaranteed  by  a  company  or 
corporation  duW  organized  or  incorporated  under  the  laws  of  this 
state,  or  authorized  to  do  business  therein,  and  to  guarantee 
the  fidelity  of  persons  holding  positions  of  public  or  private 
trust,  or  secure  any  bond  above  referred  to,  and  which  company 
shall  have  the  certificate  of  the  commissioner  of  insurance  author- 
izing it  to  do  business  therein,  as  provided  in  chapter  four  of 
title  nine  of  this  code,  and  the  premium  for  am^  such  guaranty 
or  surety  company  bond  as  defined  in  this  section,  may,  by  the 
approval  of  the  court,  be  paid  out  of  the  trust  funds  in  the  hands 
of  the  party  of  whom  the  bond  is  required.  The  certificate  of 
the  commissioner  of  insurance,  to  the  effect  that  such  company 
has  complied  with  the  requirements  of  said  chapter  and  title  and 
is  authorized  to  do  business  in  this  state,  shall  be  sufficient 
evidence  to  authorize  the  officer  or  body  having  the  approval  of 
such  bond  to  accept  and  approve  the  same,  but  no  such  security 
shall  be  accepted  on  any  bond  for  an  amount  in  excess  of  ten 
per  cent  of  the  paid  up  cash  capital  of  such  company  or  corpo- 
ration unless  the  excess  shall  be  reinsured  in  some  other  company 
or  corporation  authorized  to  do  business  in  the  state  and  in  no 
case  to  exceed  ten  per  cent  of  the  capital  of  the  reinsuring  com- 
pany and  provided  that  a  certificate  of  such  reinsurance  shall  be 


MISCELLANEOUS   SECTIONS  lo9 

furnished  to  the  insured,  but  nothing  herein  contained  shall  apply 
to  bonds  in  criminal  cases.  [36  G.  A.,  H.  F.  219,  ^  1 ;  34  G.  A., 
ch.  18,  §  1;  33  G.  A.,  ch.  25,  §  1 ;  21  G.  A.,  ch.  157,  §§  1,  5.] 

Sec.  361  (C.  C.  8434).  Release  from  liability — same  as  private 
persons.  Such  company  or  corporation  may  be  released  from  its 
liability  as  such  surety  on  any  bond  on  the  same  terms  and 
conditions,  and  in  the  same  manner,  as  is  by  law  prescribed  for 
the  release  of  natural  persons  as  such  sureties,  it  being  the  intent 
of  this  chapter  to  enable  companies  created,  incorporated  or 
chartered  for  such  purposes  to  become  surety  on  bonds  required 
by  law,  subject  to  all  the  rights  and  liabilities  of  natural  persons. 

[21  G.  A.,  ch.  157,  §  2.] 

[21  G.  A.,  ch.  157,  §  3.] 

Sec.  362  (C.  C.  8436).  Suit  on  bond  of  guarantee  company — 
notice.  AVhenever  suit  is  required  to  be 'brought  on  any  bond 
given  by  such  company,  service  shall  be  had  upon  any  agent 
of  such  company  in  this  state,  and  if  there  is  no  agent  in  the 
state,  then  service  may  be  had  by  serving  the  commissioner  of 
insurance  fifteen  days  before  the  term  of  court  in  which  the  suit 
is  sought  to  be  brought,  and  it  shall  be  the  duty  of  the  commis- 
sioner of  insurance,  upon  service  being  made  upon  him,  to  imme- 
diately mail  a  copy  of  such  notice  to  such  company  at  their 
principal  place  of  business,  and  any  notice  so  served  shall  be 
deemed  to  be  good  and  sufficient  service  on  any  such  company. 
[21  G.  A.,  ch.  157,  §  3.] 

Sec.  422  par.  6  (C.  0.  3130).  Powers  specified.  The  board  of 
supervisors  at  any  regular  meeting  shall  have  the  following 
powers,  to-wit: 

6.  To  cause  the  county  buildings  to  be  insured  in  the  name 
of  the  county,  or  otherwise  for  its  benefit.     [R,,  §  303.] 

Sec.  425  (C.  0.  3132).     Expenditure  of  insurance  money.     In 

any  county  in  this  state  where  any  of  the  public  buildings  thereof 
have  been  or  may  hereafter  be  destroyed  by  fire,  wind  or  light- 
ning, the  board  of  supervisors  of  such  county,  for  the  purpose 
of  reconstructing  the  same,  may  appropriate  and  use,  in  addition 
to  the  amount  now  authorized  by  law,  the  amount  received  by 
way  of  insurance  on  such  building  or  buildings  so  destroyed.  [19 
G.  A.,  ch.  54.] 

The  following  class  of  property  is  not  to  be  taxed : 

Sec.  1304,  par.  8  (0.  C.  4482).  Exemption.  The  accumulations 
and  funds  held  or  possessed  by  fraternal  beneficiary  associations 
for  the  purpose  of  paying  the  benefits  contemplated  by  section 
cigh-teen  hundred  and  twenty-two    (1822)    of  the   code,   or   for 


140  MISCELLANEOUS   SECTIONS 

payment  of  the  expenses  of  such  association.  [31  G.  A.,  ch.  48.] 
Sec.  2071  (C.  0.  5090).  Liability  for  negligence  or  wrongs  of 
employes.  (This  section  relates  to  the  liability'  of  railway  corpo- 
rations to  employes  in  consequence  of  neglect  or  mismanagement 
or  their  agents,  engineers  or  other  employes.) 

*  *  *  Nor  shall  an}^  contract  of  insurance,  relief,  benefit, 
or  indemnity  in  case  of  injury  or  death,  entered  into  prior  to  the 
injury,  betAveen  the  person  so  injured  and  such  corporation,  or 
any  other  person  or  association  acting  for  such  corporation,  nor 
shall  the  acceptance  of  any  such  insurance,  relief,  benefit,  or 
indemnity  b}^  the  person  injured,  his  widoAV,  heirs  or  legal  repre- 
sentatives after  the  injury,  from  such  corporation,  person,  or 
association,  constitute  any  bar  or  defense  to  any  cause  of  action 
brought  under  the  provisions  of  this  section,  but  nothing  con- 
tained herein  shall  be  construed  to  prevent  or  invalidate  any 
settlement  for  damages  between  the  parties  subsequent  to 
injuries  received.     [27  O.  A.,  ch.  49,  §  1.] 

The  so-called  Temple  amendment  (added  to  this  section  by  27  G.  A., 
ch.  49),  prohibiting  any  defense  on  account  of  a  contract  between  a  rail- 
road company  and  its  employes  in  the  nature  of  a  contract  for  insurance 
or  relief  in  case  of  accident,  made  prior  to  the  injury,  is  constitutional. 
Such  a  contract  constitutes  a  limitation  such  as  is  prohibited  by  the 
statute.     McGuire  v.  C,  B.  d  Q.  R.  Co.,  131-340. 

An  agreement  entered  into  at  the  time  of  the  employment  between  the 
company  and  an  employe  that  if  he  sustains  any  personal  injury  for 
which  he  makes  a  claim  against  the  company  for  damages  he  will  give 
notice  thereof  in  writing  within  thirty  days  is  a  limitation  on  the  com- 
pany's liability,  and  therefore  invalid.  Mumford  v.  C,  R.  I.  d  P.  Ry.  Co., 
128-685. 

Participation  in  the  benefit  of  a  relief  fund  will  not,  under  the  pro- 
visions of  this  section,  defeat  recovery  of  damage  for  personal  injury  re- 
ceived by  plaintiff  in  defendant's  employment,  the  injuries  complained 
of  having  been  received  in  this  state,  although  the  contract  of  employ- 
ment was  made  in  another  state  where  such  limitation  of  liability  was 
not  invalid.    Hamilton  v.  C.  B.  d  Q.  Ry.  Co.,  145-431. 

The  provision  of  this  section  as  amended,  relating  to  the  acceptance 
of  benefits  from  a  relief  fund,  is  not  unconstitutional.  On  appeal  affirm- 
ing McChiire  v.  C,  B.  d  Q.  Ry.  Co.,  131-340,  219  U.  S.  549,  31  Sup.  Ct.  R.  259. 

Sec.  2783  (C.  C.  2568).  Use  of  contingent  fund.  (School 
boards).  It  may  provide  and  pay  out  of  the  contingent  fund  to 
insure  school  property  such  sum  as  may  be  necessary. 

Sec.  3313  (C.  C.  6664).  Life  insurance — damages  for  death — 
widow  deemed  heir.  The  avails  of  any  life  or  accident  insurance, 
or  other  sum  of  money  made  payable  by  any  mutual  aid  or  benev- 
olent society  upon  the  death  or  disability  of  a  member  thereof, 
are  not  subject  to  the  debts  of  the  deceased,  except  by  special 
contract  or  arrangement,  and  shall  be  disposed  of  like  other 
property  left  by  the  deceased.  When  a  wrongful  act  produces 
death,  damages  recovered  therefor  shall  be  disposed  of  as  per- 
sonal property  belonging  to  the  estate  of  the  deceased,  but  if 


MISCELLANEOUS   SECTIONS  141 

the  deceased  leaves  a  husband,  wife,  child  or  parent,  it  shall  not 
be  liable  for  the  payment  of  debts.  The  word  ''heirs"  or  "legal 
heirs"  or  other  equivalent  words  used  to  designate  the  beneficia- 
ries in  any  life  insurance  policy  or  certificate  of  membership  in 
any  mutual  aid  or  benevolent  association,  where  no  contrary 
intention  is  expressed  in  such  instrument,  shall  be  construed  to 
include  the  surviving  husband  or  wife  of  the  insured,  and  the 
share  of  such  survivor  in  the  proceeds  of  such  policy  or  certificate 
made  payable  as  aforesaid  shall  be  the  same  as  that  provided  by 
law  for  the  distribution  of  the  personal  property  of  intestates. 
[18  G.  A.,  ch.  5;  C.  73,  §§  1182,  2372,  2526;  R.,  §§  2362,  4111;  C. 
'51,  §  1330.] 

Sec.  3386  (C.  C.  7917).  Heir  of  beneficiary  causing  death  or 
disability.  No  person  who  feloniously  takes  or  causes  or  procures 
another  so  to  take  the  life  of  another  shall  inherit  from  such 
person,  or  receive  any  interest  in  the  estate  of  the  decedent  as 
surviving  spouse,  or  take  by  devise  or  legacy  from  him,  any 
portion  of  his  estate;  and  no  beneficiary  of  any  policy  of  insur- 
ance or  certificate  of  membership  issued  by  any  benevolent 
association  or  organization,  payable  upon  the  death  or  disability 
of  any  person,  who  in  like  manner  takes  or  causes  or  procures  to 
be  taken  the  life  upon  which  such  policy  or  certificate  is  issued, 
or  who  causes  or  procures  a  disability  of  such  person,  shall  take 
the  proceeds  of  such  policy  or  certificate;  but  in  every  instance 
mentioned  in  this  section,  all  benefits  that  would  accrue  to  any 
such  person  upon  the  death  or  disability  of  the  person  whose  life 
is  thus  taken  or  who  is  thus  disabled  shall  become  subject  to 
distribution  among  the  other  heirs  of  such  deceased  person, 
according  to  the  foregoing  rules  of  descent  and  distribution  in 
case  of  death,  and  in  case  of  disability  the  benefits  thereunder 
shall  be  paid  to  the  disabled  person.     [29  G.  A.,  ch.  135,  §  1.] 

In  absence  of  contract  exemption  proceeds  of  policy  payable  to  insured's 
estate  where  no  beneficiary  named  in  policy  though  insured  came  to  death 
through  assassination.  Public  policy  does  not  condemn  promise  to  pay 
estate  of  insured  who  has  died  of  injuries  inflicted  by  the  named  bene- 
ficiary.    Schmidt  v.  Northern  Life  Assn.,  112  Iowa  41. 

Sec.  3499  (C.  C.  7149).  Against  insurance  companies.  Insur- 
ance companies  may  be  sued  in  any  county  in  wliich  their  prin- 
cipal place  of  business  is  kept,  or  in  which  the  contract  of 
insurance  was  made,  or  in  which  the  loss  insured  against  occurred, 
or,  jri  case  of  insurance  against  death  or  disability,  in  the  county 
of  the  domicile  of  the  insured  at  the  time  the  loss  occurred,  or 
in  the  county  of  plaintiff's  residence.  [21  G.  A.,  eh.  65,  §  13;  C. 
'73,  §  2584.] 

Under  this  section  an  action  may  be  brought  before  a  justice  of  the 
peace  against  an  insurance  company  in  another  county  than  that  of  its 
residence,  notwithstanding  the  provisions  of  §  4476,  with  reference  to  the 

10 


142  •  MISCELLANEOUS   SECTIONS 

place  of  bringing  action  in  justices  courts.  Hunt  v.  Farmers'  Ins.  Co., 
67-742. 

Suit  may  be  brought  in  the  county  where  the  loss  occurs.  State  Ins. 
Co.  V.  Granger,  62-272. 

A  provision  in  a  certificate  of  mutual  benefit  insurance  by  which  it  is 
stipulated  that  action  shall  not  be  brought  thereon  except  in  a  certain 
county  named  is  not  valid.    Matt  v.  Iowa  Mut.  Aid  Assn.,  81-135. 

An  action  may  be  brought  against  an  insurance  company  in  any  county 
in  which  the  loss  occurred,  although  it  ha-s  no  agent  on  whom  service  can 
be  made,  provided  jurisdiction  in  rem  is  acquired  by  publication.  Lesure 
Lumber  Co.,  v.  Mutual  F.  Ins.  Co.,  101-514. 

An  action  against  an  insurance  company  may  be  brought  in  the  county 
in  which  the  loss  occurred,  even  though  the  principal  place  of  business  of 
a  company  is  in  another  county  of  the  state.  Parcler  v.  National  Masonie 
Ace.  Assn.,  95-149. 

Mutual  benefit  associations  are  to  be  deemed  insurance  companies  with- 
in the  provisions  of  this  section.     IMd. 

Sec.  3530  (C.  C.  7175).     On  agent  of  insurance  company.     If 

the  action  is  against  an  insurance  company,  for  loss  or  damage 
upon  any  contract  of  insurance  or  indemnity,  service  may  be  had 
upon  any  general  agent  of  the  company  whenever  found,  or  upon 
any  recording  agent  or  agent  jvho  has  authority  to  issue  policies. 

This  provides  a  method  of  service  upon  an  agent  in  any  case,  no 
matter  whether  the  action  arose  out  of  or  was  connected  with  any 
business  involving  his  agency  or  not.  Bradshaw  v.  J)es  Moines  Ins.  Co., 
154-101. 

Sec.  4784  (C.  C.  8631).     Burning  to  injure  insurers.     If  any 

person  wilfully  burn  any  building,  goods,  wares,  merchandise  or 
other  chattels  which  are  insured  against  loss  or  damage  by  fire, 
or  wilfully  cause  or  procure  the  same  to  be  burned,  with  intent 
to  injure  the  insurer,  whether  such  person  be  the  owner  thereof 
or  not,  he  shall  be  imprisoned  in  the  penitentiary  not  exceeding 
ten  years.     [C.  '73,  3888;  R.,  4230;  C.  '51,  §  2606.] 

See.  5054  (C.  C.  8726).    Fraudulent  destruction  of  boats,  etc. 

If  any  person  cast  away,  sink  or  otherwise  destroy  any  raft,  boat 
or  vessel,  within  any  county,  with  intent  to  defraud  any  owner 
or  insurer  thereof,  or  the  owner  or  insurer  of  anj^  property  laden 
on  board  the  same,  or  any  part  thereof,  he  shall  be  imprisoned 
in  the  penitentiary  not  exceeding  five  years,  or  fined  not  exceed- 
ing two  thousand  dollars  and  imprisoned  in  the  county  jail  not 
exceeding  one  year.     [C.  '73,  §  4082;  R.,  §  4403;  C.  '51,  §  2753.] 

Sec.  5055  (C.  C.  8684).     Fitting  out  for  that  purpose.    If  any 

person  lade,  equip  or  fit  out,  or  assist  in  lading,  equipping  or 
fitting  out,  any  raft,  boat  or  vessel,  with  intent  that  the  same 
be  cast  away,  burnt,  sunk  or  otherwise  destroyed,  to  injure  or 
defraud  any  owner  or  insurer  thereof,  or  of  any  property  laden 
on  board  the  same,  he  shall  be  fined  not  exceeding  one  thousand 
dollars  and  imprisoned  in  the  countv  jail  not  exceeding  one  year. 
[C.  '73,  §  4083;  R.,  §  4404;  C.  '51,  §2754.] 


MISCELANEOUS  SECTIONS    (TAXES)  143 

Sec.  5056  (C.  C.  8687).  Making  false  bills  of  lading.  If  any 
owner  of  an}-  boat  or  vessel,  or  of  any  property  laden  or  pretened 
to  be  laden  on  board  the  same,  or  if  any  other  person  concerned 
in  the  lading  or  fitting  out  of  such  boat  or  vessel,  make  out  and 
exhibit,  or  cause  to  be  made  out  and  exhibited,  any  false  estimates 
of  any  goods  or  property  laden  or  pretended  to  be  laden  on  board 
such  boat  or  vessel  Avith  intent  to  injure  or  defraud  any  insurer 
of  such  boat  or  vessel  or  property,  or  of  any  part  thereof,  he 
shall  be  fined  not  exceeding  one  thousand  dollars,  or  imprisoned 
in  the  penitentiarv  not  more  than  three  years.  [C.  '73,  §  4084; 
R.,  §  4405;  C.  '51,'^§  2755.] 

•    Sec.  5057  (C.  C.  8688).    Making  false  affidavits  or  protests.    If 

any  master  or  other  officer  of  any  boat  or  vessel  make,  or  cause 
to  be  made,  any  false  affidavit  or  manifest,  or  if  any  owner  or 
other  person  concerned  in  such  boat  or  vessel,  or  in  the  goods 
or  property  laden  on  board  the  same,  procure  any  such  false 
affidavit  or  manifest  to  be  made,  or  exhibit  the  same,  with  intent 
to  injure,  deceive  or  defraud  any  insurer  of  such  boat  or  vessel, 
or  of  the  goods  or  propert}'  laden  on  board  of  the  same,  he  shall 
be  imprisoned  in  the  penitentiar}^  not  exceeding  five  years,  or  be 
fined  not  exceeding  three  thousand  dollars  and  imprisoned  in 
the  county  jail  not  exceeding  one  vear.  [C.  '73,  §  4085;  R.,  § 
4406;  C.  '51,  §  2756.] 

Sec.  1333  (C.  C.  4517).  Taxation  of  foreign  companies.  Every 
insurance  company  or  association  organized  or  incorporated 
under  the  laws  of  any  other  state  or  nation  other  than  the 
United  States,  and  every  other  insurance  company  whose  charter 
may  be  owned  or  a  majority  of  whose  stock  ma}^  be  controlled 
or  whose  business  shall  be  carried  on  in  the  interest  or  for  the 
benefit  of  any  insurance  company  or  association  incorporated 
under  the  laws  of  any  state  or  nation  other  than  the  United 
States,  shall  at  the  time  of  making  the  annual  statements  as 
required  by  law,  pay  into  the  state  treasm\y  as  taxes  two  and 
one-half  per  cent  of  the  gross  amount  of  premiums  received  by  it 
in  cash,  promissor}^  obligation  or  other  form  of  settlement  for 
l)usiness  done  in  the  state,  including  all  insurance  upon  property 
situated  in  this  state  and  upon  the  lives  of  persons  resident  in 
this  state,  during  the  preceding  year. 

Every  insurance  company  incorporated  under  the  laws  of  any 
state  of  the  United  States  other  than  the  state  of  Iowa,  not 
including  associations  operating  under  the  provisions  of  chapter 
seven,  title  nine  of  this  code,  or  fraternal  beneficiary  associa- 
tions doing  business  in  the  United  states,  shall  at  the  1"ime  of 
making  the  annual  statement  as  required  by  law,  pay  into  the 
state  treasury  as  taxes  two  and  one-half  per  cent  of  the  gross 
amount  of  premiums  received  by  it  for  business  done  in  this 


144  MISCELLANEOUS  SECTIONS    (TAXES) 

state,  including"  all  insurance  upon  property  situated  in  this 
state  and  upon  the  lives  of  persons  resident  in  this  state  during 
the  i^receding  year. 

At  the  time  of  paying  said  taxes  said  companies  and  associa- 
tions shall  take  duplicate  receipts  therefor,  one  of  which  shall  be 
filed  with  the  commissioner  of  insurance,  and  upon  filing  of  said 
receipt,  and  not  till  then,  the  commissioner  shall  issue  the  annual 
certificate  as  provided  by  law. 

No  deduction  or  exemption  from  the  taxes  herein  provided 
shall  be  allowed  for,  or  on  account  of  any  indebtedness  owing 
b}"  an}^  such  insurance  company  or  association.  Provided,  how- 
ever, that  companies  doing  a  fire  insurance  business  may  deduct 
from  the  gross  amount  of  premiums  received,  the  amount  of 
premiums  returned  upon  cancelled  policies  issued  upon  property 
situated  in  this  state.  [32  G.  A.,  ch.  56;  29  G.  A.,  ch.  57,  §  1; 
28  G.  A.,  ch.  43,  §  1;  C.  73,  §  807;  R.,  §  718;  G.  '51,  §  464.] 

This  section  which  requires  insurance  companies  to  pay  a  tax  on 
gross  earnings  within  the  state  and  exempts  them  from  payment  of  all 
other  taxes,  state  or  local,  except  taxes  on  real  property  and  special 
assessments  is  unconstitutional  under  constitution,  art.  8,  §  2,  which 
subjects  property  of  all  corporations  for  pecuniary  profit  to  taxation  the 
same  as  that  of  individuals.    Haivkeye  Ins.  Co.  v.  F^^encTi,  109-585. 

The  tax  here  provided  for  is  not  unconstitutional  on  account  of  lack 
of  uniformity.  There  is  no  requirement  that  taxes  on  business  or  on 
privileges  shall  be  uniform.  Scottish  U.  &  N.  Ins.  Co.  v.  Herriott, 
109-606. 

Gross  insurance  premium  tax  does  not  apply  to  premium  returned  after 
cancellation  of  policy.  Tax  not  collectible  on  reinsurance  premiums  re- 
ceived from  other  companies  without  the  state.  In  re  Continental  Casualty 
Co.    Appeal  of  Great  American  Insurance  Compayiy,  et  al.    179  N.  W.,  185. 

The  officers  of  the  state  are  not  authorized  to  collect  this  tax  by  suit 
or  distraint  of  property.  The  only  effect  of  the  non-payment  is  that  the 
auditor  [commissioner  of  insurance]  will  not  issue  a  certificate  author- 
izing the  delinquent  company  to  do  business  in  the  state  during  the 
ensuing  year.    Manchester  Ins.  Co.  v.  Herriott,  91  Fed.,  711. 

This  section  is  not  unconstitutional  on  account  of  lack  of  uniformity. 
IMcl. 

Sec.  1333-b  (C.  C.  4519).  Provides  that  every  domestic  insur- 
ance corporation,  not  including  stock,  county  mutuals  and  frater- 
nal associations,  shall  on  or  before  January  26th  of  each  year 
furnish  to  the  assessor  of  the  district  in  which  its  principal  place 
of  business  is  located  a  statement  verified  by  its  president  show- 
ing for  the  past  calendar  year: 

1.  A  duplicate  statement  required  by  law  to  be  made  to  the 
commisf^oner  of  insurance. 

2.  A  detailed  statement  of  its  property  and  assets  of  every 
kind  and  the  value  of  each  item  thereof,  including  guaranty  and 
reserve  fund. 


MISCELANEOUS  SECTIONS    (TAXES)  145 

It  shall  be  the  duty  of  the  assessor  upon  receipt  thereof  to 
assess  against  the  coi*poration  the  value  of  all  personal  property 
owned  by  such  corporation,  at  the  same  rate  and  purpose  as  tlie 
property  of  private  individuals  as  provided  in  Sec.  1305,  code. 

Sec.  1333-c  (C.  C.  4520).  [In  assessing  for  taxation  the  moneys 
and  credits  of  such  domestic  insurance  corporations,  the  assessor 
shall  ascertain  the  debts  or  liabilities,  if  any,  of  the  corporation 
to  its  shareholders  or  other  persons  which  liabilities  shall  be 
deducted  as  in  section  1311  code.  In  ascertaining  such  corporate 
indebtedness,  a  debt  shall  be  deemed  to  exist  on  account  of  its 
liabilities  on  the  policy  certificates  or  contracts  of  insurance 
issued  b}^  it  equal  to  the  amount  of  surplus  or  other  funds 
accumulated  by  such  corporation,  for  the  purpose  of  fulfilling 
its  policy  contracts  of  insurance  and  which  can  be  used  for  no 
other  purpose.]     [37  G.  A.,  ch.  258,  §  1.] 

The  purpose  of  the  legislature  as  indicated  by  statutory  provisions 
with  reference  to  the  taxation  of  insurance  companies  is  to  make  the 
moneys  and  credits  of  such  companies  taxable,  subject  only  to  certain 
definite  exceptions  and  these  exceptions  are  limited  to  funds  which  may 
be  accumulated  pursuant  to  law  or  the  contract  of  insurance  or  the 
articles  of  incorporation  of  the  company  for  the  purpose  of  fulfilling  its 
policies,  certificates  or  other  contracts  of  insurance.  Therefore  held  that 
an  unassigned  or  surplus  fund  was  not  within  the  exception.  Chicago 
Life  Ins.  Co.  v.  Board  of  Review,  131-254. 

Sec.  1333-d  (C.  C.  4521).  State  tax— date  payable.  Every 
insurance  corj)oration  or  association  of  whatever  kind  or  char- 
acter organized  under  the  laws  of  the  state  of  loAva,  not  including 
county  mutuals  or  fraternal  beneficiary  associations,  which 
count}'  mutuals  and  fraternal  beneficiary  associations  are  not 
organized  for  pecuniary  profit,  shall,  on  or  before  the  first  day 
of  March  of  each  year,  pay  to  the  treasurer  of  state  a  sum 
equivalent  to  one  per  centum  of  the  gross  receipts  from  premiums, 
assessments,  fees  and  promissory  obligations  required  by  insur- 
ance contracts  which  are  received  during  the  next  year  preceding 
the  first  day  of  January'  last  past,  after  deducting  the  amounts 
actually  paid  for  losses,  matured  endowments,  dividends  to 
policyholders  and  the  increase  in  the  amount  of  the  reserve  as 
certified  by  the  department  actuary  in  his  official  statement  to 
the  commissioner  of  insurance  on  the  31st  day  of  December 
previous,  based  on  the  actuaries'  table  of  mortality  and  four  per 
cent,  and  the  amounts  returned  to  members  upon  cancelled 
policies,  certificates  and  rejected  applications  during  said  year, 
and  not  until  such  payment  shall  the  commissioner  of  insurance 
issue  the  annual  certificate  as  provided  by  law.  Provided,  that 
insurance  companies  organized  under  the  provisions  of  chapter 
four  (4)  of  title  nine  (9)  of  the  code  shall  onh-  be  required  to 
paj^  to  the  treasurer  of  state  a  sum  equivalent  to  one  per  centum 
upon  the   gross  receipts  from  premium,  assessments,   fees  and 


146  MISCELLANEOUS  SECTIONS    (TAXES) 

promissory  obligations  for  business  done  Avithin  this  state,  or  on 
claims  arising  within  the  state,  including  all  insurance  upon 
property  situated  or  on  business  done  in  the  state,  after  deducting 
the  amount  actually  paid  for  losses  on  property  located  within 
the  state  and  the  amount  returned  ux)on  cancelled  policies  and 
rejected  applications  covering  propertj^  situated  within  this  state. 
[38  G.  A.,  ch.  371,  §  1;  32  G.  A.,  eh.  57;  28  G.  A.,  ch.  43,  §  5.] 


APPENDIX 


Appendix 


1.  Iowa  Short  Rate  Tables. 

2.  Forms  for  Articles  of  Incorporation,  Amendments,  etc. 

3.  The  Law  Relative  to  Corporations  for  Pecuniary  Profit. 

4.  The  Law  Relative  to  Employers'  Liability  and  Workmen's 


Compensation. 


IOWA  SHORT  RATE  TABLE 


Periods  exceeding  20  days,  and  not  exceeding  25  days,  to  be  the  rate  of 
25  days,  and  so  on  up  to  one  year. 

If  policy  was  written  for  one  year  and  has  been  in  force  any  number  of 
days  indicated  in  left  hand  column,  the  company  may  retain  from  the 
annual  premium  the  percentage  indicated  by  the  figures  set  opposite  in 
the  right  hand  column. 

55  days     29 


1 

day. . 

.  2 

55 

2 

days. 

.  4 

60 

3 

<( 

.  5 

65 

4 

(( 

.  6 

70 

5 

" 

.  7 

75 

6 

<( 

.  8 

80 

7 

(< 

.  9 

85 

8 

<( 

.  9 

90 

9 

♦' 

.10 

105 

10 

" 

.10 

120' 

11 

<( 

.11 

135 

12 

" 

.12 

150 

13 

<( 

.13 

165 

14 

it 

.13 

180 

15 

" 

.14 

195 

16 

(( 

.14 

210 

17 

<i 

.15 

225 

18 

(< 

.16 

240 

19 

(( 

.16 

255 

20 

(< 

.17 

270 

25 

<< 

.19 

285 

30 

(< 

.20 

300 

35 

(« 

.23 

315 

40 

<( 

.26 

330 

45 

(( 

.27 

360 

50 

(< 

.28 

30 

33 

36 

37 

38 

39 

or  three  months 40 

45 

or  four  months 50 

55 

or    five    months 60 

65 

or  six  months 70 

73 

or  seven  months 75 

78 

or  eight  months 80 

83 

or  nine  months 85 

88 

or  ten  months 90 

93 

or  eleven  months 95 

or  twelve  months lO'O 


If -policy  was  written  for  two  years  and  has  run  for  2  months  or  less, 
25  %  of  term  premium. 


Over     2  and  not  exceeding 
4 

"       6 


10 
12 
14 
16 


4  months      30 

6  "  40 

8  "  50 

10  "  60 

12  "  70 

14  "  75 

16  "  80 

18  "  85 


APPENDIX 


149 


"  18 
"  >  20 
"     22    months 


2'0 
22 


90 

95 

100 


If  policy  was  written  for  three  years   and  has   run  for   3   months  or 
less,  25%  of  term  premium. 


Over     3  and  not  exceeding  6  months 

6  "  "9 

9  "  "  12 

12  "  "  15 

15  "  "  18 

18  "  "  21 

21  "  "  24 

24  "  "  27 

27  "  "  30 

30  "  "  33 


30 
40 
50 
60 
70 
75 
80 
85 
90 
95 


33  months  100 

If  policy  was  written  for  four  years  and  has  run  for  4  months  or  less, 

25%   of  term  premium. 


Over     4  and  not  exceeding     8  months       30 

40 

50 

60 

70 

75 

80 

85 

90 

95 

44  months     100 

If  policy  was  written  for  five  years  and  has  run  for  5  months  or  less, 

25%   of  term  premium. 


4  and 

not 

exceeding  8  months 

8 

12 

12 

16 

16 

20 

20 

24 

24 

28 

28 

32 

32 

36 

36 

40 

40 

44 

Over 


5 
10 
15 
20 
25 
30 
35 
40 
45 
50 
55 


and  not  exceeding  10  months    30 


15 
20 
25 
30 
35 
40 
45 
50 
55 


40 
50 
60 
70 
75 
80 
85 
90 
95 


months  100 


If  policy  was  written  for   six  years  and  has  run  for   6  months  or  less, 

25%   of  term  premium. 


Over  6  and  not  exceeding  12 

U  ;^2  "  "  18 

"  18  "  "  24 

"  24  "  "  30 

"  30  "  "  36 

"  36  "  "  42 

"  42  "  "  48 

"  48  "  "  54 

"  54  "  "  60 

"  60  "  "  66 

"  66 


months    30 

40 

50 

60 

70 

75 

80 

85 

90 

95 


months   100 


150  APPENDIX 


HAIL   SHORT   RATE   TABLE 

Prepared  by  the  commissioner  of  insurance  of  the  state  of  Iowa  in  ac- 
cordance with  provision  of  section  1729  of  the  code  of  Iowa,  and  applying 
to  all  policies  issued  by  companies  operating  under  chapter  4,  title  9,  of 
the  code,   and  covering  growing  crops  against  the  hazard  of  HAIL. 

The  following  percentage  of  premiums  as  shown  on  policy  shall  be 
charged  and  considered  earned  in  case  of  cancellation  on  request  of  the 
insured: 

On    all   policies   cancelled    during    months    of 

January,  February,  March  and  to  April  loth 25     % 

April  15th  to  May  15th 37%7o 

May  15th  to  June  1st   50^%' 

June  1st  to  June  15th 75     % 

June   15th   to  December   31st   following 100     % 

SUGGESTIVE  FORM  FOR  ARTICLES  OF  INCORPORATION 

Articles  of  incorporation  and  amendments  to  articles  of  incorporation 
should  be  submitted  in  triplicate.  Three  copies  should  be  forwarded 
to  the  commissioner  of  insurance  for  the  approval  of  that  official  and 
the  approval  of  the  attorney  general.  After  the  approval  by  the  com- 
missioner of  insurance  and  the  attorney  general,  "such  articles  of  incor- 
poration, or  amendments  to  such  articles  of  incorporation,  should  be 
recorded  with  the  county  recorder,  after  which  they  should  be  forwarded 
to  the  secretary  of  state  for  recording  and  certification. 

Sections  1610  and  1615  of  the  corporation  law  completely  cover  this 
subject  matter. 

Section  1613  of  the  corporation  law  requires  that  articles  of  incorpora- 
tion be  published  once  a  week  for  four  consecutive  weeks  within  a  period 
of  three  months  from  time  such  articles  are  recorded  with  the  secretary  of 
state. 

Section  1615  of  the  corporation  law  requires  the  same  procedure  for 
amendments  to  articles  of  incorporation. 

Section  1613  also  requires  that  companies  make  a  return  of  proof  of 
publication  to  the  secretary  of  state  after  the  publication  has  been  made. 

The  following  forms  will  give  what  is  usually  necessary  in  articles  of 
incorporation  of  an  insurance  corporation.  These  forms  are  drawn  up 
for  stock  companies.  If  the  form  is  to  be  followed  by  a  mutual  company 
the  word  "members"  should  be  substituted  for  "stockholders"  and  for 
"stock  interest"  etc.  If  the  forms  are  to  be  followed  by  mutual  associa- 
tions the  word  "members"  should  be  substituted  for  "stockholders"  and 
the  word  "association"  substituted   for   "company"   etc. 

ARTICLES  OF  INCORPORATION  OF  THE 


We,  whose  names  are  hereto  subscribed,  hereby  associate  ourselves 
into  a  body  corporate  under  the  provisions  of  chapter  1,  title  IX,  of  the 
code  of  Iowa  and  acts  amendatory  thereof;  assuming  all  the  powers, 
rights  and  privileges  gi-anted  bodies  corporate  under  said  chapter  and 
title,  and  do  adopt  the  following  articles  of  incorporation,  to-wit: 

Article  I.     The  name  of  this  corporation  shall  be  the 

Article  II.     Its  principal  place  of  business  shall  be  at 

in  the  county  of and 

state  of  Iowa. 

Article  HI.     The  object  of  the  corporation  is 


APPENDIX  151 


(Here  state  the  object  of  the  corporation.  Designate  the  section  or 
sections  and  chapter  of  the  code  under  which  the  corporation  proposes 
to  operate.) 

The  corporation  shall  have  the  right  to  buy,  hold,  sell  and  convey 
personal  property  and  such  real  estate  as  is  authorized  by  the  laws  of 
the  state  of  Iowa  and  necessary  for  the  proper  conduct  of  the  affairs 
of  the  corporation. 

All  conveyances  of  real  property  and  releases  of  mortgages  made  by 
the  corporation  shall  be  executed  by  the  president  and  countersigned  by 
the  secretary  with  an  impression  of  the  corporate  seal  attached,  if  the 
corporation  has  a  seal;  and  all  releases  of  liens,  judgments  or  other  claims 
that  are  required  by  law  to  be  made  of  record  may  be  executed  by  the 
president,  vice-president  or  secretary  of  the  corporation. 

(The  following  article  cannot  be  used  by  a  Mutual.) 

Article  IV.     The  amount  of  capital  stock  authorized  is 

thousand  dollars,  divided  into  shares-  of 

($100.00  for  other  than  life  companies) 

dollars  each.  No  stock  shall  be  issued  until  the  corporation  has  received 
payment  in   full  therefor   at  par   in  cash.     The   capital  stock  authorized 

may  be  increased  by  vote  of in  interest  of  all 

the  stockholders,  by  the  adoption  of  an  amendment  to  these  articles. 
When  the  outstanding  capital  is  increased,  the  additional  shares  shall  be 
offered  to  the  existing  stockholders  proportionately  to  their  holdings  at 
not  less  than  par. 

(This  article  must  state  the  amount  of  capital  stock  which  cannot  be 
less  than.  $200,000.00  for  other  than  life  companies.  See  section  1783-e. 
Life  insurance  companies  need  only  have  $100,000.00  capital.  Property 
cannot  be  taken  as  payment  for  insurance  stock.) 

Article  V.  The  corporate  period  of  this  corporation  shall  begin  on 
the  date  the  secretary  of  state  issues  a  certificate  of  incorporation,  and 

shall    terminate    at    the    expiration    of years 

from  said  date  unless  sooner  dissolved  by  a 

vote  of  the  stockholders  at  any  annual  meeting,  or  at  a  special  meeting 
called  for  that  purpose,  or  by  unanimous  consent  as  provided  by  law. 

(Life  insurance  companies  may  endupe  for  fifty  years;  those  for  other 
insurance  purposes  not  to  exceed  twenty  years.     See  section   1618.) 

Article  VI.  The  affairs  of  this  corporation  shall  be  managed  by  a 
board  of directors,  who  shall  elect  a  president,  vice- 
president,  secretary  and  treasurer  and  such  other  officers,  including  an 
executive  committee,  as  they  may  see  fit  or  as  may  be  provided  for  by- 
laws  of  this  corporation. 

(Not  less  than  five  directors.     See  section  1695.) 

Article    VII.    The  annual  meeting  shall  be  held  on  the 

day  of of  each  year  at o'clock  at  the  home 

office  of  the  company.     Until  the  first  election   which   shall   be  held   on 

,    the    following   persons   shall    be 

directors: 

Name  Postoffice  Address 


and  the  following  persons  shall  be  officers: 

President     Postoffice . 

Vice-President    Postoffice , 

Secretary   Postoffice , 

Treasurer Postoffice . 

Postoffice , 


152  APPENDIX 


All  officers  of  this  corporation  shall  hold  office  for  the  term  of  one 
year  or  until  their  successors  are  elected,  and  have  qualified.  Every 
director  shall  be  a  stockholder  and  if  any  director  shall  sell  or  transfer 
his  stock  in  this  corporation  he  shall  at  once  cease  to  be  a  director. 
The  board  of  directors  may  fill  all  vacancies  occurring  in  its  membership 
between  annual  elections  by  the  appointment  of  qualified  persons  to  hold 
office  for  the  remainder  of  the  term.  Special  meetings  of  the  stock- 
holders may  be  called  at  any  time  by  the  president  upon  giving 

days'  notice  in  person  or  in  writing  to  the  stockholders  and  shall  be 
called   by   him   at   any   time    upon   request   of   stockholders   representing 

shares  of  stock,  and  in  case  of 

his  neglect   or   refusal   to   call   a  meeting,   the    parties   owning   stock   to 

the    amount    of shares    may   join    in    a 

call  of  the  stockholders,  which  meeting  shall  be  the  same  as  though 
called  by  the  president.  At  all  meetings  of  the  stockholders  each  stock- 
holder shall  be  entitled  to  one  vote  for  each  share  of  stock  held  by  him, 
which  vote  he  may  cast  in  person  or  by  written  proxy. 

Article  VIII.  The  highest  amount  of  indebtedness  to  which  this  cor- 
poration may  at  any  time  subject  itself  shall  not  exceed  two-thirds  of  its 
paid-up  and  outstanding  capital  stock. 

(A  Mutual  may  designate  a  definite  amount.) 

Article  IX.  The  private  property  of  the  stockholders  shall  be  exempt 
from  corporate  liability  except  to  the  extent  and  in  the  matter  pro- 
vided by  the  laws  of  the  state  of  Iowa. 

(Substitute  members  for  stockholders,  in  a  Mutual.) 

Article  X.  The  corporation  may  make  and  alter  by-laws  at  pleasure, 
and  may  authorize  the  board  of  directors  to  do  so,  subject  to  such  re- 
strictions as  may  be  deemed   advisable. 

Article  XI.  (Stock  companies  must  comply  with  the  provisions  of 
1821-v  relative  to  proportionate  representation.  Make  reference  to  this 
section  in  drawing  this  provision.) 

Article  XII.  Amendments  to  these  articles  may  be  made  at  any  annual 
meeting  of  the  stockholders,  or  at  a  special  meeting  called  for  that  pur- 
pose, two-thirds  of  all  stockholders  in  interest  voting  for  such  amend- 
ments. 

Dated  this   day  of 19. . . . 


State  of  Iowa, 

County,     ss. 

On  this day  of ,  19. . . . 

before  me,  a  notary  public  in  and  for  said  county  and  state,  personally 
appeared    


said  persons  being  to  me  personally  known  to  be  the  identical  persons 
whose  names  are  subscribed  to  the  foregoing  articles  of  incorporation, 
and  each  for  himself  acknowledged  the  same  to  be  his  free  and  voluntary 
act  and  deed  for  the  uses  and  purposes  therein  expressed. 

Witness   my  hand   and   notarial   seal   at 

in    the    county   of 

state  of  Iowa,  the  day  and  year  last  above  written. 

(Seal)  

Notary  Public. 


APPENDIX  153 


SUGGESTIVE    FORM    FOR   AMENDMENT   TO   ARTICLES    OF   INCOR- 
PORATION 

See   note   which   precedes   forms   for   ai-ticles   of  incorporation 
AMENDMENT  TO  ARTICLE  OF  INCORPORATION  OF  THE 


Knoio  All  Men  "by  These  Presents: 

That  at  a meeting  of  the  stockholders 

(or  members)  of company  (or  association),  a  cor- 
poration duly  organized  under  the  laws  of  the  state  of  Iowa,  held  at  the 

office  of  the  company    (or  association)    in 

Iowa,  on  the day  of A.   D. 

19 after   due   and   legal   notice   had   been   given   to   the  stockholders 

(or  members)  thereof  in  conformity  with  its  articles  of  incorporation, 
and  the  laws  of  the  state,  at  which  the  requisite  majority  of  the  stock 
(or  members)  of  said  corporation  was  represented,  the  following  amend- 
ment was  adopted,  by  a vote  of  the  stock 

interests  (or  members)  of  the  said  company  (or  association),  as  shown 
below: 

Amendment: 


The  president  and  secretary  of  the  company  (or  association)  were 
duly  authorized  and  directed  to  sign,  acknowledge,  record,  publish  and 
do  all  things  which  are  by  law  required,  to  execute,  complete  and  carry 
into  effect  the  above  amendment  to  the  articles  of  incorporation  of  said 
company    (or  association). 

We,    and    chairman 

and  secretary  of  said  meeting  do  hereby  certify  the  above  to  be  a  true 
and  correct  statement  of  the  proceedings  of  the  stockholders  (or  mem- 
bers)  at  the  above  named  meeting. 


Chairman. 


Secretary. 

In  conformity  with  the  above  resolution  we,  the  president  and  secretary 

of  said  corporation,  have  executed  this   instrument,  and   do  hereby  sign 

and  acknowledge   the   same,   for   and   in  behalf   of  the   said  corporation, 

this day  of A.   D.,   19 


President. 

Secretary. 
State  of  Iowa, 

County  of ss. 

Be  it  remembered,  that  on  this day  of 

A.  D.  19. . . .,  before  me,  a  notary  public  in 

and  for  said  county  and  state,  personally  appeared 

and each  being  to  me  personally 

known,  who  being  by  me  duly  sworn  did  say,  that  they  are  the  president 

and  secretary  respectively   of  the 

and  that  said  instrument  was  signed  and  sealed  in  behalf  of  said  cor- 


154  APPENDIX 


poration  by  authority  of  its  stockholders  (or  members),  and  that  they 
acknowledged  said  instrument  to  be  the  voluntary  act  and  deed  of  said 
corporation,  by  them  voluntarily  executed. 


(Seal)  Notary  Public. 

SUGGESTIVE  FORM  FOR  CERTIFICATE  OF  RENEWAL 

Certificates  of  renewal  must  be  submitted  in  triplicate  together  with 
three  copies  of  the  amended  articles  of  incorporation.  These  certificates 
must  be  approved  by  the  commissioner  of  insurance  and  attorney  gen- 
eral, recorded  by  the  county  recorder,  recorded  and  certified  to  by  the 
secretary  of  state,  published  as  articles  of  incorporation  are  published, 
and  proof  of  publication  returned  to  the  secretary  of  state.  See  section 
1618   of  the  corporation  law. 

CERTIFICATE  OF  RENEWAL 

Be  it  remembered,  that  at  a  special  meeting  of  the   stockholders    (or 

members)    of  the company    (or   association),   a 

corporation  duly  organized  and  existing  under  the  laws  of  the  state  of 

Iowa,  having  its  place  of  business  at 

county,  Iowa,  held  on  the day  of 

19....,  after  due  and  proper  notice  had  been  given  the  stockholders  (or 
members)  thereof,  and  at  which  meeting  the  requisite  number  of  shares 
of  stock  (or  members)  of  said  corporation  was  represented,  in  accordance 
with  its  articles  of  incorporation  and  the  laws  of  the  state,  the  following 

resolution    was    adopted    by    a vote    in 

favor  thereof,  wherefore  the  said  resolution  was  declared  duly  adopted: 

Resolved,  That  the  corporate  period  of  the 

company   (or  association),  which  will  expire  on  the. .' 

day  of ,  19 .... ,  is  hereby  extended  for  a 

period  of years  from  said  date,   continuing  until 

unless    sooner    dissolved    by    the    voluntary 

action  of  the  stockholders   (or  members). 

Be  It  Further  Resolved,  That  the  renewal,  amended  and  substituted 
articles  of  incorporation  submitted  to  the  stockholders  (or  members)  at 
said  meeting  and  hereto  attached  be  and  the  same  are  hereby  adopted 
as  the  articles  of  incorporation  of  said  corporation  under  the  renewal 
herein  provided  for. 

Resolved  Further,  That  the  president  and  secretary  of  this  company  (or 
association)  be  and  they  are  hereby  authorized  and  directed  to  sign, 
acknowledge,  record,  publish  and  do  any  and  all  things  which  are  by  law 
required,  to  execute,  complete  and  carry  into  effect  the  above  resolution, 
and  to  execute,  sign  and  acknowledge  the  renewal,  amended  and  sub- 
stituted articles  of  incorporation  duly  adopted  at  said  meeting. 

We,   ,  and   Chairman 

and  secretary  of  said  meeting  do  hereby  certify  the  above  to  be  a  true  and 
correct  statement  of  the  proceedings  of  the  stockholders  (or  members^) 
at   the   above   named    meeting. 


CJhairman. 


Secretary. 

In  conformity  with  the  above  resolution,  we,  the  president  and  secre- 
tary of  said  corporation,  have  executed  this  instrument,  and  do  hereby 
sign  and  acknowledge  the  same,  for  and  in  behalf  of  the  said  corporation, 
this day  of ,  A.  D.   19 

President. 

Secretary. 


APPENDIX  15J 


State  of  Iowa, 

County   of ss. 

Be  it  remembered  that  on  this clay  of 

A.  D.  19. . . .,  before  me,  a  notary  public  in  and  for  said  county  and  state, 

personally    appeared 

and each   being   to  me   personally   known, 

who  being  by  me  duly  sworn  did  say,  that  they  are  the  president  and  sec- 
retary  respectively    of   the 

and  that  said  instrument  was  signed  and  sealed  in  behalf  of  said  cor- 
poration by  authority  of  its  stockholders  (or  members),  and  that  they 
acknowledged  said  instrument  to  be  the  voluntary  act  and  deed  of  said 
corporation,   by   them   voluntarily   executed. 


(Seal)  Notary  Public. 

PUBLICATION  NOTICE 

(Section  1613  provides  that  notice  of  incorporation  must  be  published 
once  a  week  for  four  consecutive  weeks  during  a  period  of  three  months 
after  certificate  has  been  issued  by  the  secretary  of  state.  Section  1615 
requires  the  same  publication  of  all  amendments  to  articles  of  incorpora- 
tion. It  is  not  necessary  that  articles  or  amendments  be  published  in 
full.     The  following  concise  form, may  be  used. 

NOTICE    OF   INCORPORATION 

Notice  is  hereby  given  that  the  undesigned  have  associated  themselves 

together  as  a  body  corporate  under  the  name  of  the 

insurance  company  (or  association),  with  principal  place  of  business  at 
,   Iowa. 

The  general  nature  of  the  business  to  be  transacted  by  such  corpora- 
tion is  that  of insurance  under  the 

general  provisions  of  chapter ,  title  IX,  code  of  Iowa. 

The  amount  of  capital  stock  authorized  to  be  issued  is  $ 

This  company  (or  association)  will  commence  its  corporate  existence 
as   soon   as   a   certificate    is   issued   by   the   secretary   of   state,   and   may 

endure  for. years,  unless  otherwise  terminated  as  by  its 

articles    of    incorporation    provided. 

Its  affairs  shall  be  conducted  and  managed  by  a  president,  secretary, 

treasurer,  and  a  board  of directors  to  be  elected 

at  the  annual  meeting  of  the  stockholders  in  accord  with  its  articles  of 
incorporation  and  by-laws. 

The  highest  amount  of  indebtedness  to  which  this  company  (or  associa- 
tion) can  at  any  time  subject  itself  is  $ 

Private  property  of  the  stockholders  shall  be  exempt  from  corporate 
debts. 


CORPORATION  LAWS 


11 


Corporation  Laws 


CORPORATIONS  FOR  PECUNIARY  PROFIT 

Domestic  Corporations 

TITLE  IX,  CHAPTER  1,  CODE  OF  IOWA. 

Section  1607.  Who  may  incorporate.  Any  number  of  persons 
may  become  incorporated  for  the  transaction  of  any  lawful  busi- 
ness, but  such  incorporation  confers  no  power  or  privilege  not 
possessed  by  natural  persons,  except  as  hereinafter  provided. 
[22  G.  A.,  ch.  86,  §  2;  C.  '73,  §  1058;  R.,  §  1150;  C.  '51,  §  673.] 

Sec.  1608.  Single  person.  Except  as  otherwise  provided  hy 
law,  a  single  person  may  incorporate  under  the  provisions  of 
this  chapter,  thereby  entitling  himself  to  all  the  privileges  and 
immunities  provided  herein,  but  if  he  adopts  the  name  of  an 
individual  or  individuals  as  that  of  the  corporation,  he  must 
add  thereto  the  word  ''incorporated."  [C.  '73,  §  1088;  R.,  § 
1179;  C.   '51,  §  702.] 

Sec.  1609.  Powers.  Among  the  powers  of  such  corporations 
are  the  following : 

1.  To  have  perpetual  succession; 

2.  To  sue  and  be  sued  by  its  corporate  name ; 

3.  To  have  a  common  seal,  Avhich  it  may  alter  at  pleasure; 

4.  To  render  the  interests  of  the  stockholders  transferable; 

5.  To  exempt  the  ^private  property  of  its  members  from 
liability  for  corporate  debts,  except  as  otherwise  declared; 

6.  To  make  contracts,  acquire  and  transfer  property — pos- 
sessing the  same  powers  in  such  respects  as  natural  persons ; 

7.  To  establish  by-laws  and  make  all  rules  and  regulations 
necessarv  for  the  management  of  its  affairs.  [C.  '73,  §  1059;  R., 
§  1151 ;  C.  '51,  §  674.] 

Sec.  1610.  Articles  adopted  and  recorded — approval — fees — 
index  book  of  county  recorder.  Before  commencing  any  business 
except  their  own  organization,  they  must  adopt  articles  of  incor- 
poration, which  must  be  signed  and  acknowledged  by  the 
incorporators,  recorded  in  the  office  of  the  recorder  of  deeds  of 
the  county  where  the  principal  place  of  business  is  to  be,  in  a  book 
kept  therefor ;  and  the  recorder  must,  within  five  days  thereafter, 
indorse  thereon  the  time  when  the  same  were  filed  and  the  book 
and  page  where  the  record  will  be  found.     Said  articles  thus 


APPENDIX   (Corporations) 


159 


indorsed  shall  then  be  forwarded  to  the  secretary  of  state,  and 
be  by  him  recorded  in  a  book  kept  for  that  purpose. 

The  county  recorder  shall  keep  in  his  office  an  index  book  for 
articles  o£  incorporation,  which  shall  be  ruled  and  headed  sub- 
stantially after  the  following-  form,  and  shall  make  entries  therein 
in  order  in  which  they  are  filed  in  his  office. 

INDEX   TO  ARTICLES   OF  INCORPORATION 


Name 


Place  of 
Business 


Date  of 
FilinB 


M     D     Y 


Date  of 
Inst 


M     D    Y 


Where 
Recorded 


P&. 


Capital 

Stock 


Keninrks 


Such  corporation  shall  pay  to  the  secretary  of  state,  before  a 
certificate  of  incorporation  is  issued,  a  fee  of  twenty-five  dollars, 
and,  for  all  authorized  stock  in  excess  of  ten  thousand  dollars,  an 
additional  fee  of  one  dollar  per  thousand.  Should  any  corpora- 
tion increase  its  capital  stock,  it  shall  pay  a  fee  to  the  secretary 
of  state  of  one  dollar  for  each  one  thousand  dollars  of  such 
increase,  and  a  recording  fee  of  ten  cents  per  one  hunlred  words, 
no  recording  fee  to  be  less  than  fifty  cents.  Farmers'  mutual  co- 
operative creamery  associations,  whose  articles  of  incorporation 
provide  that  the  business  of  the  association  be  conducted  on  a 
purely  mutual  and  co-operative  plan,  without  capital  stock,  and 
Avhose  patrons  shall  share  equally  in  expense  and  profits,  domestic 
and  domestic  local  building-  and  loan  associations  [and]  incorpo- 
rations organized  for  the  manufacture  of  sugar  from  beets  grown 
in  the  state  of  Iowa,  shall  be  exempt  from  the  payment  of  the 
incorporation  filing  fee  provided  herein  in  excess  of  twenty-five 
dollars.  When  articles  of  incorporation  are  presented  to  the 
secretary  of  state  for  the  purpose  of  being  filed,  if  he  is  satisfied 
that  they  are  in  proper  form  to  meet  the  requirements  of  law, 
that  their  object  is  a  lawful  one  and  not  against  public  policy, 
tliat  their  plan  for  doing  business,  if  any  be  provided  for,  is 
honest  and  lawful,  he  shall  file  them;  but  if  he  is  of  the  opinion 
that  they  are  not  in  proper  form  to  meet  the  requirements  of 


160'  APPENDIX   (Corporations) 

the  law,  or  that  their  object  is  an  unlawful  one,  or  against 
public  policy,  or  that  their  plan  for  doing  business  is  dishonest 
or  unlawful,  he  shall  refuse  to  file  them.  Should  a  question  of 
doubt  arise  as  to  the  legality  of  the  articles,  he  shall  submit 
them  to  the  attorney  general  whose  duty  it  shall  be  to  forthwith 
examine  and  return  them  with  an  opinion  in  writing  touching 
the  point  or  points  concerning  which  inquiry  has  been  made  of 
him.  If  such  opinion  is  in  favor  of  the  legality  of  the  articles, 
and  no  other  objections  are  apparent,  they  shall  then,  upon  pay- 
ment of  the  proper  fee,  be  filed  and  otherwise  dealt  with  as  the 
law  provides.  If,  however,  such  opinion  be  against  their  legality 
they  shall  not  be  filed.  Upon  the  rejection  of  any  articles  of 
incorporation  by  the  secretary  of  state,  except  for  the  reason  that 
they  have  been  held  by  the  attorney  general  to  be  illegal,  they 
shall,  if  the  person  or  persons  presenting  them  so  request,  be  sub- 
mitted to  the  executive  council,  which  shall,  as  soon  as  prac- 
ticable, consider  the  said  articles,  and  if  the  council  determines 
that  the  articles  are  in  proper  form,  of  honest  purpose,  not 
against  public  policj^,  nor  otherwise  objectionable,  it  shall  so 
advise  the  secretary  of  state  in  writing,  whereupon  he  shall, 
upon  the  payment  of  the  proper  fees,  file  the  same  and  proceed 
otherwise  as  the  law  directs;  but  if  the  council  sustains  the 
previous  action  of  the  secretary  of  state  in  rejecting  said  articles, 
such  decision  by  the  council  shall  be  reported  to  the  secretary  of 
state  in*  writing,  and  he  shall  then  return  said  articles  to  the 
person  or  persons  presenting  them  with  such  explanation  as 
shall  be  proper  in  the  case.  Nothing  in  this  act  shall  be  construed 
as  repealing  or  modifying  any  statute  now  in  force  in  respect  to 
the  approval  of  articles  of  incorporation  relating  to  insurance 
companies,  building  and  loan  associations  or  investment  com- 
panies. [35  G.  A.,  ch.  135,  §  1 ;  34  G.  A.,  ch.  73,  ^  1 ;  33  G.  A., 
ch.  104,  §  1;  32  G.  A.,  ch.  70;  29  G.  A.,  ch.  66,  §  1 :  27  G.  A.,  ch. 
41,  U ;  27  G.  A.,  ch.  40,  ^  1,  2 ;  26  G.  A.,  ch.  98 ;  17  G.  A.,  ch.  23 ; 
C.  '73,  §1060;  E.'  1152;  C.  '51,  §  675.] 

Sec.  1611.  Limit  of  indebtedness.  Such  articles  must  fix  the 
highest  amount  of  indebtedness  or  liability  to  which  the  corpora- 
tion is  at  any  one  time  to  be  subject,  which  in  no  case,  except 
risks  of  insurance  companies,  and  liabilities  of  banks  not  in 
excess  of  their  available  assets,  not  including  their  capital,  shall 
exceed  two-thirds  of  its  capital  stock.  But  the  provisions  of  this 
section  shall  not  apply  to  the  bonds  or  other  railway  or  street 
railway  securities,  issued  or  guaranteed  by  railway  or  street 
railway  companies  of  the  state,  in  aid  of  the  location,  construc- 
tion and  equipment  of  railways  or  street  railways,  to  an  amount 
not  exceeding  sixteen  thousand  dollars  per  mile  of  single  track, 
standard  gauge,  or  eight  thousand  dollars  per  mile  of  single 
track,  narrow  gauge,  lines  of  road  fo.r  each  mile  of  railway  or 
street   railway   actually   constructed   and   equipped.     Nor   shall 


APPENDIX   (Corporations)  161 

the  provisions  of  this  section  apply  to  the  debentures  or  bonds 
of  any  company  incorporated  under  the  provisions  of  this 
chapter,  the  payment  of  which  shall  be  secured  by  an  actual 
transfer  of  real  estate  securities  for  the  benefit  and  protection 
of  purchasers  thereof;  such  securities  to  be  at  least  equal  in 
amount  to  the  par  value  of  such  bonds  or  debentures,  and  to  be 
first  liens  upon  unincumbered  real  estate  worth  at  least  twice  the 
amount  loaned  thereon.  Nor  shall  the  provisions  of  this  section 
apply  to  the  debentures  or  bonds  of  any  company  organized 
under  the  provisions  of  this  chapter,  provided  said  company  shall 
have  not  less  than  one  million  dollars  ($1,000,000)  paid  in  and 
outstanding  capital  stock,  the  payment  of  which  debentures  and 
bonds  shall  be  secured  by  the  actual  transfer  of  the  obligation  of 
individuals,  partnerships,  associations  or  corporations,  for  the 
benefit  and  protection  of  purchasers  thereof;  provided,  however, 
that  where  such  obligations  are  secured  by  the  actual  transfer 
of  warehouse  receipts  of  bonded  warehouses  as  security  collateral 
thereto,  said  obligation  to  represent  not  exceeding  seventy-five 
per  cent  (75%)  of  market  value  of  the  commodity  represented 
by  such  warehouse  receipt,  debentures  or  bonds  may  be  issued 
to  an  amount  not  in  excess  of  one  hundred  per  cent  (100%)  of 
the  actual  value  of  said  obligations;  provided,  further,  that  the 
said  debentures  shall  be  first  liens  upon  the  said  oblia'ations  and 
upon  the  warehouse  receipts  collateral  thereto ;  and  provided, 
further,  that  where  such  debentures  or  bonds  shall  be  issued 
upon  the  security  of  obligations  endorsed  by  a  bank  permitted 
to  do  banking  business  in  the  state  of  Iowa,  or  obligations  secured 
by  collateral  other  than  warehouse  receipts  of  bonded  ware- 
houses, said  collateral  to  consist  of  chattel  loans  on  live  stock 
up  to  eighty  per  cent  (80%)  of  its  value,  or  investments  author- 
ized by  law  for  Iowa  savings  banks,  they  shall  not  be  issued  for 
an  amount  in  excess  of  ninety  per  cent  (90%)  of  the  actual 
value  of  such  obligations,  and  such  debentures  or  bonds  shall  be 
first  liens  upon  said  obligations,  and  the  collateral  thereto.  Nor 
to  debentures  or  bonds  issued  by  any  corporation  organized 
under  this  chapter  for  the  purpose  of  manufacturing  or  selling 
gas,  heat,  steam  or  electricity,  or  constructing  or  operating  inter- 
urban  or  street  railways,  or  for  any  one  or  more  of  said  pur- 
poses, when  such  debentures  or  bonds  are  not  issued  in  an  amount 
exceeding  twice  the  amount  of  the  paid  up  capital  stock  of  such 
corporation.  [39  G.  A.,  S.  F.  727;  36  G.  A.,  ch.  278,  M  ;  21  G.  A., 
ch.  57;  20  G.  A.,  ch.  22;  0.  '73,  §  1061  ;  R.,  §  1153;  C.  '51,  §  676.] 

Sec.  1612.  Place  of  business — how  changed — notice  or  process 
— upon  whom  and  how  served.  Any  corporation  organized  under 
the  laws  of  this  state  shall  fix  upon  and  designate  in  its  articles 
of  incorporation  its  principal  place  of  business  which  must  be  in 
this  state,  and  if  outside  the  limits  of  a  city  or  town  then  its 
postoffice  address  must  be  given.    The  place  of  business  so  desig- 


162  APPENDIX   (Corporations) 

nated  shall  not  be  changed  except  through  an  amendment  to  its 
articles  of  incorporation.  Its  place  of  business  shall  be  in  charge 
of  an  agent  of  the  corporation  and  shall  be  the  place  where  it 
shall  hold  its  meetings,  keep  a  record  of  its  proceedings  and  its 
stock  and  transfer  books.  Provided  that  any  corporation  organ- 
ized under  the  laws  of  this  state  that  does  not  maintain  an  office 
in  the  county  of  its  organization,  or  transact  business  in  this 
state,  shall  file  with  the  secretarj^  of  state  a  written  instrument 
duly  signed  and  sealed,  authorizing  the  secretary  of  state  to 
acknowledge  service  of^  notice  or  process  for  and  in  behalf  of 

[^"or"  in  31  G.  A.  session  laws.     Editor] 

such  cor^Doration  in  this  state,  and  consenting  that  service  of  no- 
tice or  process  may  be  made  upon  the  secretary  of  state,  and  when 
so  made  shall  be  taken  and  held  as  valid  as  if  served  according 
to  the  laws  of  this  state,  and  waiving  all  claim  or  right  or  error 
by  reason  of  such  acknowledgment  of  service.  Such  notice  or 
process,  with  a  copy  thereof,  may  be  mailed  to  the  secretary 
of  state  at  Des  Moines,  Iowa,  in  a  registered  letter  addressed  to 
him  b}^  his  official  title,  and  he  shall  immediately  upon  its  receipt 
acknowledge  service  thereon  in  behalf  of  the  defendant  corpora- 
tion by  writing  thereon,  giving  the  date  thereof,  and  shall 
immediately  return  such  notice  or  process  in  a  registered  letter 
to  the  clerk  of  the  court  in  which  the  suit  is  pending,  addressed 
by  his  official  title,  and  shall  also  forthwith  mail  such  copy,  with 
a  copy  of  his  acknowledgment  of  service  written  thereon,  in  a 
registered  letter  addressed  to  the  corporation  or  person  who  shall 
be  named  or  designated  by  the  corporation  in  such  written 
instrument.  If  any  such  corporation  shall  fail  to  file  with  the 
secretary  of  state  the  power  and  authority  to  acknowledge  serv- 
ice as  herein  provided  on  or  before  Juh^  first,  nineteen  hundred 
and  six,  it  shall  be  the  duty  of  the  secretary  of  state  to  notify 
such  corporation  to  file  such  power  and  authority  within  thirty 
days  thereafter,  and  in  case  of  failure  to  complj-  with  such  notice 
it  shall  be  the  dut}^  of  the  attorney  general  of  the  state  to  proceed 
against  such  corporation  to  forfeit  its  charter  and  wind  up  its 
affairs.  [33  G.  A.,  ch.  105,  §  10;  33  G.  A.,  ch.  104,  §  2;  31  G.  A., 
ch.  64.1 

Sec.  1613.  Notice  published — what  to  contain.  A  notice  must 
be  published  once  each  week  for  four  weeks  in  succession  in  some 
newspaper  as  convenient  as  practicable  to  the  principal  place  of 
business,  which  must  contain: 

1.  The  name  of  the  corporation  and  its  principal  place  of 
business ; 

2.  The  general  nature  of  the  business  to  be  transacted; 

3.  The  amount  of  capital  stock  authorized,  and  the  times  and 
conditions  on  which  it  is  to  be  paid  in; 


APPENDIX   (Corporations)  163 

4.  The  time  of  the  coinmencemcnt  and  termination  of  the 
corporation ; 

5.  By  what  officers  or  persons  its  aff'airs  are  to  be  conducted, 
and  the  times  when  and  manner  in  which  they  will  be  elected ; 

6.  The  highest  amount  of  indebtedness  to  which  it  is  at  any 
time  to  subject  itself; 

•    7.     Whether  private  property  is  to  be  exempt  from  corporate 
debts. 

Proof  of  such  publication,  by  affidavit  of  the  publisher  of  the 
newspaper  in  which  it  is  made,  shall  be  filed  Avith  the  secretary 
of  state,  and  shall  be  evidence  of 'the  fact.  [29  G.  A.,  cli.  67,  §  1; 
C.  '73,  §§  1062-3;  R.,  §§  1154-5;  C.  '51,  §§  677-8.] 

Sec.  1613-a.  Defective  publication — legalized.  That  each  cor- 
poration heretofore  incorporated  under  the  laws  of  the  state  of 
Iowa  which  have  [has]  caused  notice  of  their  [its]  incorporation 
to  be  published  once  each  w^eek  for  four  consecutive  weeks  in 
some  daily,  semiweekly  or  triweekly  newspaper,  instead  of  caus- 
ing the  same  to  be  published  in  each  issue  of  such  newspaper 
for  four  consecutive  weeks  are  hereby  legalized  and  are  declared 
legal  incorporations  the  same  as  though  the  law  had  been  com- 
plied with  in  all  respects  in  regard  to  the  publication  of  notice. 
[29  G.  A.,  ch.  226,  §  1.] 

Sec.  1614.  May  begin  business.  The  corporation  may  com- 
mence business  as  soon  as  the  certificate  is  issued  by  the  secretary 
of  state,  and  its  acts  shall  be  valid  if  the  publication  in  a  news- 
paper is  made  within  three  months  from  the  date  of  such  certifi- 
cate.    [17  G.  A.,  ch.  23;  C.  '73,  §  1064;  R.,  §  1156;  C.  '51,  §  679.] 

Sec.  1614-a.  When  time  limit  for  publication  has  expired — 
legalized.  That  in  all  instances  where  the  incorporators  of  cor- 
porations for  pecuniary  profit  have  omitted  to  publish  notice 
of  incorporation  within  three  months  from  the  date  of  the  certifi- 
cate of  incorporation  issued  by  the  secretary  of  state,  but  have 
published  notice  thereafter,  in  manner  and  form  as  by  law 
required,  such  notices  are  hereby  legalized  and  shall  have  the 
same  force  and  effect  as  though  published  within  said  period  of 
three  months,  as  to  all  acts  of  said  corporation  from  the  date  of 
said  completed  publication.  [37  G.  A.,  ch.  06,  §  1 ;  33  G.  A.,  ch. 
272,  §  1.] 

Sec.  1614-b.  Pending  litigation — not  affected.  Nothing  herein 
contained  shall  be  construed  as  to  affect  pending  litigation.  [37 
G.  A.,  ch.  96,  §  2;  33  G.  A.,  ch.  272,  §  2.] 


164  APPENDIX   (Corporations) 

NOTICES  OF  INCORPORATION 

H.  F.   199 

AN  ACT  to  legalize  the  publication  of  certain  notices  of  incorporation 
in  cases  where  notice  had  not  been  published  within  the  time  as  pro- 
vided in  section  sixteen  hundred  fourteen  (1614)  of  the  code. 

Be  It  Enacted  hy  the  General  AssemMy  of  the  State  of  Iowa: 

Section  1.  Notices  of  incorporation — delayed  publication^^ 
legalization.  That  in  all  instances  where  the  incorporators  of 
corporations  organized  in  this  state  for  pecuniary  profits  have 
omitted  to  publish  notices  of  such  incorporation  within  three 
months  from  and  after  the  date  of  the  certificates  of  incorporation 
issued  by  the  secretary  of  state,  but  did  publish  such  notices 
within  three  months  after  the  date  required  by  law  in  such  cases 
in  the  manner  and  form  as  required  by  law,  such  notices  of  incor- 
poration are  hereby  legalized,  and  shall  have  the  same  force  and 
effect  in  all  respects  as  though  the  same  had  been  published 
within  said  three  months'  period,  as  provided  by  section  sixteen 
hundred  and  fourteen  (1614)  of  the  code  and  amendments 
thereto,  and  all  the  corporate  acts  of  such  corporations  from  and 
after  the  date  of  such  completed  publications  are  hereby  legalized 
in  all  respects. 

Sec.  2.  Pending  litigation.  Nothing  herein  contained  shall 
be  so  construed  as  to  affect  any  pending  litigation.  [38  G.  A., 
ch.  158.] 

Approved  April  5,  A.  D.  1919. 

SENATE  FILE  NO.  465. 

AN  ACT  to  legalize  the  publication  of  certain  notices  of  incorporation  in 
cases  where  notice  had  not  been  published  within'the  time  as  provided 
in  section  sixteen  hundred  fourteen   (1614^  of  the  code   (C.  C.  5334). 

Be  It  Enacted  hy  the  General  AssemMy  of  the  State  of  Iowa: 

Section  1.  That  in  all  instances  whete  the  incorporators  of 
corporations  organized  in  this  state  for  pecuniary  profit  have 
omitted  to  publish  notices  of  such  incorporation  within  three 
months  from  and  after  the  date  of  the  certificates  of  incorpora- 
tion issued  by  the  secretary  of  state,  but  did  publish  such  notices 
thereafter  in  the  m^ner  and  form  as  required  by  law,  such 
notices  of  incorporation  are  hereby  legalized,  and  shall  have  the 
same  force  and  effect  as  though  published  within  said  period  of 
three  months. 

Sec  2.  Nothing  herein  contained  shall  be  so  construed  as  to 
effect  any  pending  litigation. 

Sec.  3.  This  act  being  deemed  of  immediate  importance  shall 
take  effect  and  be  in  force  from  and  after  its  publication  in  the 


APPENDIX   (Corporations)  165 

Des  Moines  Register  and  tlie  Des  Moines  Capital,  newspapers 
published  in  the  city  of  Des  Moines,  Iowa,  without  expense  to 
the  state. 

Approved  March  11,  A.  D.  1921. 

Sec.  1614-c.  Annual  report — whajt  shown.  Any  corporation 
organized  under  the  laws  of  this  state  or  under  the  laws  of  any 
other  state,  territory  or  any  foreign  country,  which  has  complied 
with  the  laws  of  this  state  relating  to  the  organization  of  corpo- 
rations and  secured  a  certificate  of  incorporation  or  permit  to 
transact  business  in  this  state,  and  any  corporation  that  may 
hereafter  organize  and  become  incorporated  under  the  laws 
of  this  state,  and  shall  secure  a  certificate  of  incorporation  or 
permit  to  transact  business  in  this  state,  and  any  foreign  cor- 
poration that  may  hereafter  comply  with  the  laws  of  this 
state  relating  to  foreign  corporations  and  secure  a  permit  to 
transact  business  within  this  state,  shall,  between  the  first 
day  of  July  and  the  first  day  of  August  of  each  year,  make 
an  annual  report  to  the  secretarj^  of  state,  said  report  to  be  in 
such  form  as  he  may  prescribe,  upon  a  blank  to  l)e  prepared  by 
him  for  that  purpose,  and  such  report  shall  contain  the  follow- 
ing information : 

1 .  Name  and  postoffice  address  of  the  corporation ; 

2.  The  amount  of  capital  stock  authorized; 

3.  The  amount  of  capital  stock  actually  issued  and  out- 
standing ; 

4.  Par  value  of  such  stock,  designating  whether  preferred  or 
common  stock,  and  amount  of  each  kind; 

5.  The  names  and  postoffice  addresses  of  its  officers  and  direc- 
tors and  whether  any  change  of  place  of  business  has  been  made 
during  the  j^ear  previous  to  making  said  report.  [33  G.  A.,  ch. 
105,  §  1.] 

Sec.  1614-d.  Signature  and  oath — by  whom — permit — exemp- 
tion. The  report  required  by  section  one  of  this  act  shall  be 
signed  and  sworn  to  by  an  officer  of  the  corporation,  and  when 
filed  with  the  secretary  of  state  shall  be  accompanied  by  the  fee 
required  in  section  three  hereof,  and  also  by  an  application  for 
a  permit  to  be  issued  to  said  corporation  under  the  provisions 
of  this  act;  said  permit  to  be  in  such  form  as  the  secretary  of 
state  may  prescribe  and  which  shall  be  in  force  and  effect  for 
one  year  from  and  after  tlie  first  day  of  July  of  the  year  in 
which  it  is  issued,  except  that  where  the  term  of  a  corporate 
existence  shall  expire  in  less  than  a  year  from  the  first  day  of 
July  aforesaid,  then  said  permit  shall  be  issued  for  such  unex- 
pired term  only;  provided,  however,  that  any  corporation  organ- 
ized under  the  laws  of  this  state,  and  any  foreign  corporation 


166  APPENDIX   (Corporations) 

filing  a  certified  copy  of  its  articles  of  incorporation  after  the 
first  day  of  April  of  any  year,  shall  be  exempt  from  the  provi- 
sions of  this  act  for  the  period  ending  one  year  from  the  first 
day  of  July  following,  after  which  it  shall  be  subject  to  all  the 
provisions  of  this  act.     [33  G.  A.,  ch.  105,  §  2.] 

Sec.  1614-e.  Annual  fee.  *  Every  corporation  whose  corporate 
period  has  not  expired,  which  has  heretofore  obtained,  or  may 
hereafter  obtain,  a  certificate  of  incorporation  or  permit  under 
the  provisions  of  chapter  one  of  title  nine  of  the  code  to  transact 
business,  in  this  state  as  a  corporation,  whether  the  same  be  a 
domestic  or  a  foreign  corporation,  shall  pay  to  the  secretary 
of  state  an  annual  fee  in  the  sum  of  one  dollar.  [33  G.  A.,  ch. 
105,  §  3.] 

Sec.  1614-f.  Failure  to  make  a  report  and  pay  fee — penalties 
— list  of  delinquencies — action  to  collect.  Any  corporation  organ- 
ized under  the  laws  of  this  state,  and  any  foreign  corporation 
authorized  to  do  business  in  this  state,  which  shall  fail  to  make 
the  report  and  pay  the  annual  fee  provided  for  in  this  act,  and 
within  the  time  required  in  section  one  hereof,  shall,  in  addition 
to  the  annual  fee  of  one  dollar  required,  incur  the  following 
penalties,  beginning  the  month  of  September  and  dating  from 
the  first  day  thereof,  to-wit:  For  the  month  of  September  the 
sum  of  one  dollar,  for  the  month  of  October  the  sum  of  two 
dollars,  for  the  month  of  November  the  sum  of  three  dollars, 
for  the  month  of  December  the  sum  of  four  dollars,  and  for  each 
month  thereafter  the  sum  of  five  dollars.  If  on  the  first  day  of 
January  following,  such  corporation  shall  not  have  filed  the 
annual  report  and  paid  the  annual  fee  together  with  all  monthly 
penalties  due  at  the  time  of  fiilng  said  report  and  paying  said 
fee,  the  secretary  of  state  shall  furnish  to  the  attorney  general  a 
list  of  deliquent  domestic  corporations  and  he  may  direct  the 
county  attorney  of  the  county  in  w^hich  the  corporation  has  its 
principal  place  of  business  to  bring  suit  for  the  collection  of 
the  fee  and  penalties  then  due,  or  may  bring  such  action  himself. 
Any  domestic  corporation  may,  prior  to  the  first  day  of  February 
of  any  subsequent  year,  escape  the  pajanent  of  fee  and  penalties 
by  dissolving  the  corporation  in  the  manner  provided  by  section 
sixteen  hundred  and  seventeen  of  the  code,  and  filing  with  the 
secretary  of  state  a  proof  of  publication  of  notice  of  dissolution. 
Any  foreign  corporation  that  shall  fail  to  make  the  annual 
report  and  pay  the  annual  fee  and  penalties  that  may  be  due 
shall  therebj^  forfeit  its  right  to  do  business  within  this  state. 
[38  G.  A.,  ch.  205,  §  1 ;  33  G.  A.,  ch.  :!05,  §  4.] 

Sec.  1614-g.  Notice  of  delinquency.  During  the  month  of 
August  of  each  year  the  secretary  of  state  shall  prepare  a  list 
of  all  delinquent  corporations  and  file  the  same  in  his  office,  and 
on  or  before  the  first  day  of  September  he  shall  send  by  registered 


APPENDIX   (Corporations)  167 

mail  to  each  delinquent  a  notice  of  sucli  delinquency  and  of  the 
penalties  provided  in  section  four  of  this  act,  and  that  if  the 
annual  report  required  is  not  filed  and  the  annual  fee  paid, 
together  with  penalties  due,  on  or  before  the  last  day  of  Janu- 
ary, that  on  the  first  day  of  February  following,  notice  of 
such  delinquency  will  be  filed  with  the  attorney  general,  wlio 
may  cause  action  to  be  brought  for  the  collection  of  the  fee 
and  penalties  due  the  state,  or,  at  his  discretion,  the  attorney 
general  may  recommend  that  the  secretary  of  state  cancel  the 
name  of  any  delinquent  corporation  from  the  list  of  live  corpo- 
rations in  his  office,  and  enter  such  cancellation  on  the  proper 
records,  and  when  so  cancelled  by  the  secretary  of  state  the 
corporate  rights  of  any  such  corporation  shall  be  forfeited  and 
its  corporate  period  terminated  on  the  date  such  cancellation 
shall  have  been  entered  on  the  records  of  his  office;  provided, 
however,  that  the  secretary  of  state  shall  forward  to  such  corpo- 
ration, a  written  notice  of  the  recommendations  of  the  attorney 
general,  such  notice  to  state  that  unless  said  corporation  shall 
within  sixty  days  of  the  date  of  such  notice  fully  comply  with 
the  provisions  of  this  act  b}^  filing  in  the  office  of  the  secretary 
of  state  any  report  that  may  be  due  and  pay  all  fees  and  penal- 
ties that  have  accrued,  or,  in  lieu  thereof  file  a  proof  of  publica- 
tion of  notice  of  dissolution  as  required  by  section  sixteen 
hundred  seventeen  (1617)  of  the  code,  a  declaration  of  forfeiture 
and  cancellation  will  be  entered  on  the  records  of  his  office. 
After  such  declaration  and  forfeiture  shall  have  been  entered  by 
the  secretary  of  state  on  the  records  of  his  office  such  corpo- 
ration shall  not  be  entitled  to  exercise  the  rights  of  a  corporate 
body,  except,  it  may  be  allowed  a  reasonable  time  to  close  up  its 
business  and  wind  up  its  affairs,  but  no  new  business  shall  be 
transacted.  The  notice  herein  provided  for,  w^hen  enclosed  in  a 
sealed  envelope  with  legal  postage  affixed  thereon,  and  addressed 
to  the  corporation,  shall  constitute  a  legal  notice  for  the  purpose 
of  this  act,  provided,  that  any  corporation  whose  corporate 
rights  shall  have  been  cancelled  and  forfeited  in  the  manner 
provided  in  this  act,  or  any  stockholder  or  creditor  of  such 
corporation  may,  however,  make  an  application  to  the  executive 
council  in  the  manner  provided  in  section  one  hundred  seventy-h 
(170-h),  supplement  to  the  code,  3913,  for  a  compromise  of  the 
claim  of  the  state  for  the  fee  and  penalties  that  may  have  accrued 
under  the  provisions  of  this  chapter,  and  upon  payment  to^  the 
secretary  of  state  the  fee  or  fees  that  may  have  accrued,  and 
such  amount  in  addition  thereto  as  penalties  as  may  be  fixed 
by  the  executive  council,  and  also,  upon  filing  such  annual  reports 
as  may  be  delinquent,  the  secretary  of  state  shall  reinstate  said 
corporation  and  the  decree  of  cancellation  and  forfeiture  pre- 
viously entered  shall  be  annulled  and  the  corporation  shall  be 
entitled    to    continue    to    act   as    a    corporation    for    the    unex- 


168  APPENDIX   (Corporations) 

pired  portion  and  its  corporate  period,  as  fixed  by  its  articles 
of  incorporation  and  the  limitations  prescribed  by  law,  with  the 
right  of  renewal  under  section  sixteen  hundred  eighteen-a 
(1618-a),  supplement  to  the  code,  1913;  provided,  however,  that 
no  corporation  shall  be  permitted  to  waive  any  duty  or  obligation 
required  of  corporations  or  the  payment  of  any  just  claim  or 
claims  by  reason  of  such  cancellation,  forfeiture,  and  reinstate- 
ment as  herein  provided.  [38  G.  A.,  ch.  205,  §  2;  33  G.  A., 
ch.  105,  §  5.] 
[^"of"   in  enrolled  bill.] 

Sec.  5  (38  G.  A.,  ch.  205).  Fees  and  penalty  a  lien.  The  fees 
and  penalty  provided  for  in  this  act*  shall  be  a  prior  lien  on  any 
property  of  the  corporation  against  all  persons,  whether  said 
property  is  in  the  possession  of  said  corporation  or  otherwise. 

*See  sees.  1614-f  and  1614-g. 

Sec.  1614-h.     Forfeiture  of  permit — entry  of  cancellation.    On 

the  first  day  of  February  following  the  date  of  the  notice  pro- 
vided for  in  section  five  of  this  act,  all  foreign  corporations  that 
have  not  complied  with  the  provisions  of  this  act  shall  forfeit 
the  right  to  transact  business  in  this  state  and  a  declaration  of 
forfeiture  and  cancellation  shall  be  entered  upon  the  margin 
of  the  record  of  the  certified  copy  of  the  articles  of  incorpora- 
tion of  such  company  in  the  office  of  the  secretary  of  state  or  in 
such  other  record  as  the  secretary  of  state  may  provide.  [38 
G.  A.,  ch.  205,  §  3;  33  G.  A.,  ch.  105,  §  6.] 

Sec.  1614-j.  Complying  corporations  listed  with  county 
recorder.  After  the  first  day  of  November  and  not  later  than 
the  first  day  of  January  of  each  year,  the  secretary  of  state 
shall  compile  an  alphabetical  list  of  the  domestic  and  foreign 
corporations  that  have  complied  with  the  provisions  of  this  act, 
together  with  postoffice  address,  and  mail  a  copy  thereof  to  each 
county  recorder  in  this  state,  who  shall  file  the  same  in  his 
office.     [33  G.  A.,  ch.  105,  §  8.] 

Sec.  1614-k.  Annual  notice  of  requirements  by  secretary  of 
state.  It  shall  be  the  duty  of  the  secretary  of  state  between  the 
first  day  of  May  and  the  first  day  of  July  of  each  year  to  notify 
all  corporations  whose  corporate  period  has  not  expired,  or  that 
have  not  dissolved  according  to  law,  that  are  subject  to  the  pro- 
visions of  this  act,  of  the  requirements  herein  made,  enclosing 
therewith  a  blank  form  of  report  and  application  as  herein  pro- 
vided; and  the  mailing  of  said  notice  at  Des  Moines,  Iowa,  ad- 
dressed to  the  corporation  at  its  postoffice  address  as  shown  by 
the  records  of  his  office  shall  be  deemed  a  full,  complete  and  legal 
notice  for  the  purpose  of  this  act.     [33  G.  A.,  ch.  105,  §  9.] 


APPENDIX   (Corporations)  169 

Sec.  1614-i.  Certain  corporations  exempted.  Nothing  in  thi^ 
chapter  shall  be  construed  as  imposing-  an  annual  fee  or  requir- 
ing a  report  from  any  corporation  organized  for  religious,  edu- 
cational, scientific  or  charitable  purposes  or  other  corporations 
organized  under  chapter  two  of  title  nine  of  the  code,  or  of  anj^ 
corporation  engaged  in  the  banking  business,  nor  to  insurance 
companies  or  associations  who  have  paid  the  taxes  provided  in 
sections  thirtee!n  hundred  thirty-three  >and  thirteen  hundred 
thirty-three-d  of  the  supplement  to  the  code,  191):5,  and  received 
a  certificate  of  authoritv  from  the  state  auditor.  [38  G.  A.,  ch. 
205  §  4;  34  G.  A.,  ch.  18,  §  20;  33  G.  A.,  ch.  105,  §  7.] 

Sec.  1615.  Change  of  articles — fees.  Amendments  to  articles 
of  incorporation  making  changes  in  any  of  the  provisions  of  the 
articles  may  be  made  at  an}-  annual  meeting  of  the  stockholders 
or  special  meeting  called  for  that  purpose,  and  they  shall  be  valid 
only  when  recorded,  approved  and  published  as  the  original  ar- 
ticles are  required  to  be.  If  no  increase  is  made  in  the  amount 
of  capital  stock,  a  certificate  fee  of  one  dollar  and  a  recording 
fee  of  ten  cents  per  one  hundred  words  must  be  paid ;  no  record- 
ing fee  less  than  fifty  cents.  Where  capital  stock  is  increased 
the  certificate  fee  shall  be  omitted  but  a  filing  fee  of  one  dollar 
per  thousand  dollars  of  such  increase  together  with  a  recording 
fee  of  ten  cents  per  one  hundred  words  shall  be  paid.  Such 
amendments  need  only  be  signed  and  acknowledged  by  such  of- 
ficers of  the  corporation  as  may  be  designated  by  the  stockhold- 
ers to  perform  such  act.  [33  G.  A.,  ch.  104,  §  5;  22  G.  A.,  ch.  88; 
C.  73,  §  1065;  R.  §  1157;  C.  '51,  §  680.] 

Sec.  1616.  Individual  property  liable.  A  failure  to  substan- 
tially comply  with  the  foregoing  requirements  in  relation  to  or- 
ganization and  publicity  shall  render  the  individual  property  of 
the  stockholders  liable  for  the  corporate  debts;  but  corporators 
and  stockholders  in  railways  and  street  railway  companies  shall 
be  liable  only  for  the  amount  of  stock  held  by  them  therein.  [C. 
73,  §  1068;  R.  §§  1166,  1338;  C.  '51,  §  689.] 

Sec.  1617.  Dissolution — notice  of.  A  corporation  may  be  dis- 
solved prior  to  the  period  fixed  in  the  articles  of  incorporation, 
by  unanimous  consent,  or  in  accordance  with  the  provisions  of 
its  articles,  and  notice  thereof  must  be  given  in  the  same  manner 
and  for  the  same  time  as  is  required  for  its  organization;  pro- 
vided however,  that  only  the  officers  of  a  corporation  shall  be 
required  to  sign  and  acknowledge  the  articles  of  dissolution  of 
such  corporation  and  the  notice  of  such  dissolution  shall  be 
deemed  sufficient  if  signed  by  the  officers  of  such  corporation  and 
published  as  required  bv  law.  [37  G.  A.,  ch.  128,  §  1 ;  C.  '73,  §§ 
1066-7;  R.,   §§  1159-60;  C.   '51,  §§  682-3.] 

Sec.  1618.  Duration — renewal — certificate  and  articles  to  be 
recorded — fees — notice — proof   filled — exemptions.      Corporations 


170  APPENDIX   (Corporations) 

for  the  construction  and  operation,  or  the  operation  alone, 
of  steam  railways,  interurban  railways  and  street  railways, 
for  the  establishment  and  conduct  of  savings  banks,  or 
for  the  transaction  of  the  business  of  life  insurance,  may 
be  formed  to  endure  fifty  years;  those  for  other  purposes, 
not  to  exceed  twenty  years;  but  in  either  case  they  may  be 
renewed  from  time  to  time  for  the  same  or  shorter  periods,  within 
three  months  before  or  after  the  time  for  the  termination  thereof, 
if  a  majority  of  the  votes  cast  at  any  regular  election,  or  special 
election  called  for  that  purpose,  be  in  favor  of  such  renewal,  and 
if  those  voting  for  such  renewal  will  purchase  at  its  real  value 
the  stock  voted  against  such  renewal.  Such  renewals  shall  date 
from  the  expiration  of  the  corporate  period  which  it  succeeds  and 
shall  be  limited  in  duration  to  a  period  not  exceeding  the  time 
allowed  by  law  to  the  same  class  of  corporations.  Within  five 
days  after  the  said  action  of  the  stockholders  for  the  renewal 
of  any  corporation,  a  certificate,  showing  the  proceedings  re- 
sulting in  such  renewal,  sworn  to  by  the  president  and  secretary 
of  the  corporation,  or  by  such  other  officers  as  may  be  designated 
by  the  stockholders,  together  with  the  articles  of  incorporation, 
Avhich  may  be  the  original  articles  of  incorporation  or  amended 
and  substituted  articles,  shall  be  filed  for  record  in  the  office  of 
the  recorder  of  the  county  'in  which  the  principal  place  of  busi- 
ness of  said  corporation  is  situated,  and  the  same  shall  be  re- 
corded. Upon  filing  with  the  secretary  of  state  the  said  certifi- 
cate and  articles  of  incorporation,  within  ten  days  after  they 
are  filed  with  the  recorder,  and  upon  the  payment  to  the  secre- 
tary of  state  of  a  fee  of  twenty-five  dollars,  together  with  a  re- 
cording fee  of  ten  cents  per  one  hundred  words  and  an  additional 
fee  of  one  dollar  per  thousand  for  all  authorized  stock  in  excess 
of  ten  thousand  dollars,  the  secretary  of  state  shall  record  the 
said  certificate  and  the  said  articles  of  incorporation  in  a  book 
to  be  kept  by  him  for  that  purpose,  and  shall  issue  a  proper  cer- 
tificate for  the  renewal  of  the  corporation.  Within  three  months 
after  the  filing  of  the  certificate  and  articles  of  incorporation  with 
the  secretary  of  state,  the  corporation  so  renewed  shall  publish 
a  notice  of  renewal.  Said  notice  shall  be  published  once  each 
week  for  four  weeks  in  succession  in  a  newspaper  as  convenient 
as  practicable  to  the  principal  place  of  business  of  the  corpora- 
tion, and  proof  of  publication  filed  in  the  office  of  the  secretary 
of  state,  and  shall  contain  the  matters  and  things  required  to  be 
publislied  by  section  sixteen  hundred  thirteen  of  the  code,  relat- 
ing to  original  incorporations.  Farmers'  mutual  co-operative 
creamery  associations,  domestic  and  domestic  locai  building  and 
loan  associations,  and  corporations  organized  for  the  manufac- 
ture of  sugar  from  beets  grown  in  the  state  of  Iowa,  shall  be 
exempt  from  the  pavment  of  the  incorporation  fee,  provided  here- 
in.    [34  G.  A.,  ch.  74,  §  1 ;  34  G.  A.,  ch.  73,  §  2 ;  33  G.  A.,  ch.  104,  § 


APPENDIX   (Corporations)  171 

3 ;  30  G.  A.,  ch.  2,  §  13 ;  29  G.  A.,  cli.  66,  §  2 ;  28  G.  A.,  ch.  56,  §  1 ; 
C.   '73,  §  1069;  R.  §  1158;  C.   '51,  §  681.] 

Sec.  1618-la.  Renewals  legalized.  That  in  all  instances  where 
proper  action  has  been  taken  prior  to  February  1,  1915,  by  the 
stockholders  for  renewal  of  any  corporation  for  pecuniary  profit 
and  the  certificate  showing  such  proceedings  together  Avith  the 
articles  of  incorporation  have  been  filed  and  recorded  in  the 
office  of  the  county  recorder  and  later  in  the  office  of  the  sec- 
retary^ of  state,  although  there  has  been  failure  to  file  such  cer- 
tificates and  articles  of  incorporation  in  either  or  both  of  the 
said  offices  within  the  time  specified  therefor  by  law;  such  re- 
newals are  hereby  legalized  and  shall  be  held  to  have  the  same 
force  and  effect  as  though  the  filings  of  the  said  documents  in  the 
said  offices  had  been  made  within  the  periods  prescribed  by  the 
statute.     [36  G.  A.,  ch.  54,  §  1.] 

Sec.  1618-lb.  Pending  litigation.  This  act  shall  not  affect 
pending  litigation.     [36  G.  A.,  ch.  54,  §  2.] 

Sec.  1618-a.  Renewal  of  corporate  existence.  The  corporate 
existence  of  any  state  or  savings  bank  may  be  renewed  or  ex- 
tended, from  time  to  time,  for  a  period  not  longer  than  the  time 
for  which  such  banks  may  organize,  by  an  affirmative  vote  of 
two-thirds  of  the  stockholders  thereof,  at  a  stockholders'  meet- 
ing held  for  that  purpose,  within  three  months  before  or  after 
the  time  of  the  expiration  of  its  charter  as  shown  by  its  certifi- 
cate of  incorporation  issued  by  the  secretary  of  state.  Such 
meeting  shall  be  called  upon  a  notice  signed  by  at  least  two  of  the 
officers  of  the  bank  and  by  a  majority  of  its  directors,  specif yinsr 
the  object  of  the  meeting,  and  the  time  and  place  thereof,  pub- 
lished once  a  week  for  four  consecutive  weeks  before  the  time  at 
which  the  same  is  to  be  held,  in  some  newspaper  in  the  county 
wherein  the  bank  is  located.  If  at  such  meeting  the  reouired  vote 
is  given,  a  certificate  of  the  proceeding's  showinsr  compliance  with 
the  foregoina:  provisions  and  the  time  to  which  the  corporate 
period  is  to  be  continued,  shall  be  signed  and  verified  by  tho  af- 
fidavit of  the  chairman  and  secretary  of  tlie  meetiupr,  certified  to 
by  a  majority  of  the  board  of  directors,  and  fosrether  with  the 
articles  of  incorporation,  as  they  exist  at  the  date  of  the  meet- 
insr,  shall  be  recorded  in  the  office  of  the  recorder  of  deeds  of  the 
proper  county  and  filed,  recorded  and  fees  paid,  as  provided  in 
section  sixteen  hundred  eisrhteen  of  the  code  and  shall  be  by 
the  secretarv  of  state  certified  to  the  auditor  of  stato.  When  the 
meeting  is  held  previous  to  the  exniration  of  the  charter  of  the 
bank,  such  amendments  may  be  made  to  the  articles  of  incorpora- 
tion, subject  to  the  provisions  thereof,  as  mav  be  deemed  neces- 
sary and  whether  held  before  or  after  the  extension  of  the  cor- 
porate period,  such  changes  may  be  made  in  the  articles  as  are 
necessary  to  show  the  time  to  which  the  corporate  period  is  ex- 


172  APPENDIX   (Corporation-s) 

tended  and  the  names  of  the  officers  and  directors  at  the  time 
of  the  renewal  or  extension.  AVhen  the  above  has  been  complied 
with,  the  auditor  of  state  shall  issue  to  such  bank  a  certificate 
as  provided  in  section  eighteen  hundred  forty-three  of  the  code, 
notice  of  which  shall  be  published  as  required  by  the  provisions 
of  said  section.     [31  G.  A.,  ch.  65.] 

[The  above  section  is  made  applicable  to  §§  1889-d  to  1889-n  by  § 
1889-m.] 

Sec.  1618-b.  Fees — since  when  due — ^repeal.  [33  G.  A.,  ch. 
104,  §  6.]      [28  G.  A.,  ch.  56,  §  2.] 

Sec.  1619.  Legislative  control.  The  articles  of  incorporation, 
by-laws,  rules  and  regulations  of  corporations  hereafter  organ- 
ized under  the  provisions  of  this  title,  or  whose  organization 
may  be  adopted  or  amended  hereunder,  shall  at  all  times  be  sub- 
ject to  legislative  control,  and  may  be  at  any  time  altered, 
abridged  or  set  aside  by  law,  and  everv  franchise  obtained,  used 
or  en.ioyed  by  such  corporation  may  be  regulated,  withheld,  or 
be  subject  to  conditions  imposed  upon  the  enjoyment  thereof, 
whenever  the  general  assembly  shall  deem  necessary  for  the  pub- 
lic good.     [C.  '73,  §  1090.] 

Sec.  1620.  Fraud— penalty  for.  Intentional  fraud  in  failino: 
to  comply  substantially  with  the  articles  of  incorporation,  or  in 
deceiving  the  public  or  individuals  in  relation  to  their  means  or 
their  liabilities,  shall  be  a  misdemeanor,  and  shall  subject  those 
guilty  thereof  to  a  fine  and  imprisonment,  or  both,  at  the  discre- 
tion of  the  court.  Any  person  who  has  sustained  injury  from 
such  fraud  may  also  recover  damages  therefor  against  those 
guilty  of  participating  in  such  fraud.  [C.  '73,  §  1071;  R.,  § 
1163;  C.  '51,  §  686.] 

Sec.  1621.  Diversion  of  funds.  The  diversion  of  the  funds  of 
the  corporation  to  other  objects  than  those  mentioned  in  its 
articles  and  in  the  notice  published,  if  any  person  be  iniured 
thereby,  and  the  payment  of  dividends  which  leaves  insufficient 
funds  to  meet  the  liabilities  thereof,  shall  be  such  fraud  as  will 
subject  those  guilty  thereof  to  the  penalties  of  the  preceding  sec- 
tion: and  such  dividends,  or  their  eauivalent,  in  the  hands  of 
stockholders,  shall  be  subject  to  such  liabilities.  If  the  directors 
or  other  officers  or  agents  of  any  corporation  shall  declare  and 
pay  anv  dividend  when  such  corporation  is  known  by  them  to 
be  insolvent,  or  any  dividend  the  payment  of  which  would  render 
it  insolvent,  or  which  would  diminish  the  amount  of  its  capital 
stock,  all  directors,  officers  or  agents  knowingly  consenting  there- 
to shall  be  jointly  and  severally  liable  for  all  the  debts  of  such 
corporation  then  existing,  but  dividends  made  in  good  faith  be- 
fore knowledge  of  the  occurring  of  losses  shall  not  come  within 
the  provisions  of  this  section.  [C.  '73,  §§  1072-3;  R.,  §§  1164-5; 
C.  '51,  §§  687-8.] 


APPENDIX   (Corporations)  173 

Sec.  1622.  Forfeiture.  Any  intentional  violation  of  the  board 
of  directors  or  the  managing  officers  of  the  corporation  of  the 
provisions  of  the  two  preceding  sections  shall  work  a  forfeiture 
of  the  corporate  privileges,  to  be  enforced  as  provided  by  law. 
If  the  indebtedness  of  any  corporation  shall  exceed  the  amount  of 
indebtedness  permitted  by  law,  the  directors  and  officers  of  such 
corporation  knowingly  consenting  thereto  shall  be  personally  and 
individually  liable  to  the  creditors  of  such  corporation  for  such 
excess.     [C.  73,  §§  1074-5;  K,  §§  1167-8;  C.  '51,  §§  690-1.] 

Sec.  1623.  Keeping  false  accounts.  The  intentional  keeping  of 
false  books  or  accounts  shall  be  a  misdemeanor  on  the  part  of 
any  officer,  agent  or  employe  of  the  corporation  guilty  thereof, 
or  of  any  one  whose  duty  it  is  to  see  that  such  books  or  accounts 
are  correctly  kept,     [Same.] 

FALSE  ENTRIES  UPON  BOOKS  OF  EMPLOYERS,  ETC. 

S.    F.    402 

AN  ACT  to  punish  the  making  of  any  false  entries  upon  the  books  of  a 
corporation  or  other  employer  by  any  officer,  agent  or  employe  of  such 
corporation  or  employer. 

Be  It  Enacted  by  the  General  Assemhly  of  the  State  of  Iowa: 

Section  1.  Books  of  Corporation,  etc. — False  entries — felony — 
punishment.  Any  officer,  agent  or  employe  of  any  corporation 
who  shall  knowingly  make  or  knowingly  authorize  to  be  made 
false  entries  upon  the  books  of  such  corporation,  and  any  employe 
of  another  who  shall  kno^vingly  make  or  cause  to  be  made  false 
entries  upon  the  books  of  his  employer,  shall  be  guilty  of  a  felony, 
and  upon  conviction  shall  be  punished  by  imprisonment  not  to 
exceed  two  (2)  years,  or  by  a  fine  not  to  exceed  five  thousand 
dollars  ($5,000.00),  or  by  both  such  fine  and  imprisonment.  [38 
G.  A.,  ch.  210.] 

Approved  April  11,  A.  D.  1919. 

Sec.  1624.  By-laws  posted.  A  copy  of  the  by-laws  of  the  cor- 
poration, w^ith  the  names  of  all  of  its  officers,  must  be  posted  in 
the  principal  places  of  business  subject  to  public  inspection.  The 
secretary  of  each  corporation  shall,  upon  a  written  request,  fur- 
nish to  the  stockholders  of  said  corporation  a  printed  or  type- 
written list,  giving  the  names  of  the  stockholders  and  their  post- 
office  address,  and  the  number  of  shares  owned  by  each  stock- 
holder. Said  list  shall  be  prepared  and  ready  for  delivery  upon 
said  request  not  later  than  thirty  days  prior  to  the  annual  meet- 
ing of  the  stockholders  and  not  more  than  sixty  days  prior  to 
said  annual  meeting.  Said  written  request  must  be  made  at  least 
fortv  davs  prior  to  said  annual  meeting.  [39  G.  A.,  H.  F.  740; 
C.  73,  §^1076;  R.,  §  1161;  C.  '51,  §  684.] 

12 


174  APPENDIX   (Corporations) 

Sec.  1625.  Statement  of  stock  and  indebtedness.  A  statement 
of  the  amount  of  capital  stock  subscribed,  the  amount  of  capital 
actually  paid  in,  and  the  amount  of  the  indebtedness  in  a  general 
way,  must  also  be  kept  posted  in  like  manner,  which  shall  be  cor- 
rected as  often  as  any  material  change  takes  place  in  relation  to 
any  part  of  the  subiject-matter  thereof.  [C.  73,  §  1077;  R.,  § 
1162;  C.  '51,  §  685.] 

Sec.  1626.  Transfer  of  shares.  The  transfer  of  shares  is  not 
valid,  except  as  between  the  parties  thereto,  until  regularly  en- 
tered upon  the  books  of  the  company,  showing  the  name  of  the 
person  by  and  to  whom  transferred,  the  numbers  or  other  desig- 
nation of  the  shares,  and  the  date  of  the  transfer ;  but  such  trans- 
fer shall  not  exempt  the  person  making  it  from  any  liability  of 
said  corporation  created  prior  thereto.  Its  books  must  be  so 
kept  as  to  shoAv  the  original  stockholders,  their  interests,  the 
amount  paid  on  their  shares,  and  all  transfers  1  hereof;  which 
books,  or  a  copy  thereof,  so  far  as  the  items  mentioned  in  this 
section  are  concerned,  shall  be  subject  to  the  inspection  of  an}-- 
person  desiring  the  same.  When  any  shares  of  stock  shall  be 
transferred  to  any  person,  firm  or  corporation  as  collateral  se- 
curity, such  person,  firm  or  corporation  may  notify  in  writing 
the  secretary  of  the  corporation  whose  stock  is  transferred  as 
aforesaid,  and  from  the  time  of  such  notice,  and  until  written 
notice  that  said  stock  shall  have  ceased  to  be  held  as  collateral 
security,  said  stock  so  transferred  and  noticed  as  aforesaid  shall 
be  considered  in  law  as  transferred  on  the  books  of  the  corpora- 
tion which  issued  said  stock,  without  any  actual  transfer  on  the 
books  of  such  corporation  of  such  stock.  In  such  case,  it  shall 
be  the  duty  of  the  secretary  or  cashier  of  the  corporation  or  of 
the  person  or  firm  to  which  such  stock  shall  have  been  transferred 
as  collateral  security  at  once,  upon  its  ceasing  to  be  so  held,  to 
inform  the  secretary  of  the  corporation  issuing  such  stock  of 
such  fact.  The  secretary  of  the  company  whose  stock  is  trans- 
ferred as  collateral  shall  keep  a  record  showing  such  notice  of 
transfer  as  collateral,  and  notice  of  discharge  as  collateral,  sub- 
ject to  public  inspection.  No  holder  of  stock  as  collateral  secur- 
ity shall  be  liable  for  assessments  on  the  same.  [26  G.  A.,  ch. 
si  ;  C.  '73,  §  1078;  R.,  §  1169;  C.  '51,  §  692.] 

Sec.  1627.  Amount  paid  in.  No  certificate  or  shares  of  stock 
shall  be  issued,  delivered  or  transferred  by  any  corporation,  of- 
ficer or  agent  thereof,  or  by  the  owner  of  such  certificate  or 
shares,  without  having  indorsed  on  the  face  thereof  Avhat  amount 
or  portion  of  the  par  value  has  been  paid  to  the  corporation  issu- 
ing the  same,  and  whether  such  payment  has  been  in  money  or 
property.  Any  person  violating  the  provisions  of  this  section,  or 
knowingly  making  a  false  statement  on  such  certificate,  shall  be 
fined  not  less  than  one  hundred  dollars  nor  more  than  five  hun- 


APPENDIX   (Corporations)  175 


dred  dollars,  and  shall  stand  committed  to  the  county  jail  until 
such  fine  and  costs  are  paid.  This  section  shall  not  apply  to 
railway  or  quasi  public  corporations  organized  before  the  lirst 
day  of  October,  eighteen  hundred  ninety-seven.  [28  G.  A.,  ch. 
57,  §  L] 

Sec.  1628.     Non-user— repeal.     [38  G.  A.,  ch.  374,  §  1.] 

8ec.  1629.  Expiration.  Corporations  whose  charters  expire 
by  limitation  or  the  voluntary  act  of  the  stockholders  may  never- 
theless continue  to  act  lor  the  purpose  of  winding  up  their  affairs. 
[C.  73,  §  1080;  K.,  §  1171;  C.  '51,  §  69i.J 

Sec.  1630.  Sinking  fund.  For  the  purpose  of  repairs,  rebuild- 
ing, enlarging,  or  to  meet  contingencies,  or  for  the  purpose  of 
creating  a  sinking  fund,  the  corporation  may  set  apart  a  sum 
which  it  may  loan,  and  take  proper  securities  therefor.  [C. 
'73,  §  1081;  K.,  §  1176;  0.   '51,  ^  699.] 

Sec.  1631.  Liability  of  stockholders.  Neither  anything  in  this 
chapter  contained,  nor  any  provisions  in  the  articles  of  incorpora- 
tion, shall  exempt  the  stockholders  from  individual  liability  to 
the  amount  of  the  unpaid  installments  on  the  stock  owned  by 
them,  or  transferred  by  them  for  the  purpose  of  defrauding 
creditors ;  and  execution  against  the  company  may,  to  that  extent, 
be  levied  upon  the  private  property  of  any  such  individual.  In 
none  of  the  cases  contemplated  in  this  chapter  can  the  private 
property  of  the  stockholders  be  levied  upon  for  the  payment  of 
corporate  debts  w^hile  corporate  property  can  be  found  with 
which  to  satisfy  the  same ;  but  it  will  be  sufficient  proof  that  no 
property  can  be  found,  if  an  execution  has  issued  on  a  judgment 
against  the  corporation,  and  a  demand  has  been  thereon  made  of 
some  one  of  the  last  acting  officers  of  the  body  for  a  property 
on  which  to  levy,  and  he  neglects  to  point  out  any  such  property. 
In  suits  by  creditors  to  recover  unpaid  installments  upon  shares 
of  stock  against  any  person  who  has  in  any  manner  obtained 
such  stock  of  the  corporation,  the  stockholder  shall  be  liable 
for  the  difference  between  the  amount  paid  by  him  to  the  corpor- 
ation for  said  stock  and  the  face  value  thereof.  [C.  '73,  §  1082; 
R.,  1172;  C.  '51,  §  695.] 

Sec.  1632.  Corporate  property  exhausted.  Before  any  stock- 
holder can  be  charged  Avith  the  payment  of  a  judgment  renaered 
for  a  corporate  debt,  an  action  shall  be  brought  against  him,  in 
any  stage  of  which  he  may  point  out  corporate  property  subject 
to  levy;  and,  upon  his  satisfying  the  court  of  the  existence  of 
such  property,  by  affidavit  or  otherwise,  the  cause  may  be  con- 
tinued, or  execution  against  him  stayed,  until  the  property  can 
be  levied  upon  and  sold,  and  the  court  may  subsequently  render 
judgment  for  anj^  balance  which  there  may  be  after  disposing  of 


176  APPENDIX   (Corporations) 

the  corporate  property ;  but  if  a  demand  of  property  has  been 
made  as  contemplated  in  the  preceding  section,  the  costs  of  said 
action  shall,  in  any  event,  be  paid  by  the  company  or  the  de- 
fendant therein,  but  he  shall  not  be  permitted  to  controvert  the 
validity  of  the  judgment  rendered  against  the  corporation,  unless 
it  was  rendered  through  fraud  and  collusion.  [C.  '73,  §§  1083-4; 
K.,  1173-4;  C.  '51,  §§  696-7.] 

Sec.  1633.  Indemnity — contribution.  When  the  property  of  a 
stockholder  is  taken  for  a  corporate  debt,  he  may  maintain  an 
action  against  the  corporation  for  indemnity,  and  against  any  of 
the  other  stockholders  for  contribution.  [C.  '73,  §  1085 ;  R.,  § 
1175;  C.   '51,  §  698.] 

Sec.  1634.  Franchise  sold  on  execution.  The  franchise  of  a 
corporation  may  be  levied  upon  under  execution  and  sold,  but  the 
corporation  shall  not  become  thereby  dissolved,  and  no  dissolu- 
tion of  the  original  corporation  shall  effect  the  franchise,  and 
the  purchaser  becomes  vested  with  all  the  powers  of  the  corpora- 
tion therefor.  Such  franchise  shall  be  sold  without  appraisement. 
[C.  '73,  §  1086;  R.,  §  1177;  C.   '51,  §  700.] 

Sec.  1635.  Production  of  books.  In  proceedings  by  or  against 
a  corporation  or  a  stockholder  to  charge  his  private  property, 
or  the  dividends  received  by  him,  the  court  may,  upon  motion 
of  either  party,  upon  cause  shown  for  that  purpose,  compel  the 
officers  or  agents  of  the  corporation  to  produce  the  books  and 
records  of  the  corporation.  [C.  '73,  §  1087;  R.,  §  1178;  C.  '51, 
§  701.] 

Sec.  1636.  Estopped.  No  person  or  persons  acting  as  a  cor- 
poration shall  be  permitted  to  set  up  the  want  of  a  legal  organi- 
zation as  a  defense  to  an  action  against  them  as  a  corporation, 
nor  shall  any  person  sued  on  a  contract  made  with  such  an  act- 
ing corporation,  or  sued  for  an  injury  to  its  property,  or  a  wrong 
done  to  its  interests,  be  permitted  to  set  up  a  want  of  such  legal 
organization  in  his  defense.  [C.  '73,  §  1089;  R.,  §  1181;  C.  '51,  § 
704.] 


FOREIGN  CORPORATIONS 

TITLE  IX,  CHAPTER  1,  CODE  OF  IOWA. 

Sec.  1637.  Foreign  corporations — filing  articles — process — ap^ 
plication — increase  of  capital — fees.  Any  corporatioh  for  pecuni- 
ary profit  organized  under  the  laws  of  another  state,  or  of  any 
territory  of  the  United  States,  or  of  any  foreign  country,  which 
has  transacted  business  in  the  state  of  Iowa  since  the  first  day  of 
September,  eighteen  hundred  eighty-six,  or  desires  hereafter  to 


APPENDIX   (Corporations)  177 

transact  business  in  this  state,  and  which  has  not  a  permit  to  do 
such  business  shall  file  with  the  secretary  of  state  a  certified 
copy  of  its  articles  of  incorporation,  duly  attested  by  the  sec- 
retary of  state  or  other  state  officer  m  whose  office  the  original 
articles  were  filed,  accompanied  by  a  resolution  of  its  board  of 
directors  or  stockholders  authorizing  the  filing  thereof,  and  also 
authorizing  service  of  process  to  be  made  upon  any  of  its  officers 
or  agents  in  this  state  engaged  in  transacting  its  business,  and 
requesting  the  issuance  to  such  corporation  of  a  permit  to  transact 
business  in  this  state ;  said  application  to  contain  a  stipulation 
that  such  permit  shall  be  subject  to  the  provisions  of  this  chapter. 
Said  application  sliall  also  contain  a  statement  subscribed  and 
sworn  to  by  at  least  two  of  the  principal  officers  of  the  corpora^ 
tion,  setting  forth  the  following  facts,  to-wit : 

1.  The  total  authorized  capital  of  the  corporation; 

2.  The  total  paid  up  capital  of  the  corporation; 

3.  The  total  value  of  all  assets  of  the  corporation,  including 
mone}'-  and  property  other  than  money,  represented  by  capital, 
surplus,  undivided  profits,  bonds,  promissory  notes,  certificates 
of  indebtedness  or  other  designation,  whether  carried  as  money 
on  hand  or  in  bank  real  estate  or  personal  property  of  any  de- 
scrij3tion ; 

4.  The  total  value  of  money  and  all  other  propert}^  the  cor- 
poration has  in  use  or  held  as  investment  in  the  state  of  Iowa, 
at  the  time  the  statement  is  made  (if  any)  ; 

5.  The  total  value  of  money  and  all  other  property  the  cor- 
poration proposes  or  expects  to  make  use  of  in  the  state  of  Iowa, 
during  the  ensuing  year ; 

6.  Certified  copy  of  the  resolution  of  the  board  of  directors 
of  said  corporation  giving  name  and  address  in  Iowa  of  a  resident 
agent  on  whom  the  service  of  original  notice  of  civil  suit  in  the 
courts  of  this  state  may  be  served.  Failing  which,  or  in  the 
event  such  agent  may  not  be  found  within  the  state,  service  of 
such  process  may  then  be  made  upon  said  corporation  through 
the  secretary  of  the  state  of  Iowa  by  sending  the  original  and 
two  copies  thereof  to  him,  and  on  the  original  of  which  he  shall 
accept  service  on  behalf  of  said  corporation,  retain  one  copy  for 
his  files  and  send  the  other  by  registered  mail  to  the  corporation 
at  the  address  of  its  home  office  as  shown  by  the  records  in  his 
office,  which  service  shall  have  the  same  force  and  effect  as  if  law- 
fully made  upon  said  corporation  within  the  county  where  such 
civil  suit  could  be  maintained  against  it  under  the  laws  of  this 
state ; 

The  secretary  of  state  can  make  such  independent  and  further 
investigation  as  to  the  property  within  this  state  owned  by  any 


178  APPENDIX   (Corporations) 

such  corporatiou  as  lie  may  desire,  and  upon  tlie  true  facts  de- 
termine the  value  thereof,  and  fix  the  fee  to  be  paid  by  such 
company.  Before  a  permit  is  issued  authorizing  such  corporation 
to  transact  business  in  the  state  of  Iowa,  said  corporation  shall 
pay  to  the  secretary  of  state  a  fee  of  ten  cents  per  one  hundred 
words  for  recording  the  certified  copy  of  the  articles  of  incorpor- 
ation, with  resolution  and  statement  as  previously  set  forth,  and 
a  filing  fee  of  twenty-five  dollars  upon  ten  thousand  dollars  or 
less  of  money  and  property  of  such  company  actually  within  the 
state  of  Iowa,  and  of  one  dollar  for  each  one  thousand  dollars  of 
such  money  or  property  within  this  state  in  excess  of  ten  thou- 
sand dollars.  If  from  time  to  time  the  amount  of  money  or  other 
propert}^  in  use  in  the  state  of  Iowa  by  said  foreign  corporation 
is  increased,  said  corporation  shall  at  the  time  of  said  increase, 
or  at  the  time  of  making  annual  report  to  the  secretary  of  state, 
in  July  of  each  year,  file  with  the  secretary  of  state  a  sworn 
statement  showing  the  amount  of  such  increase,  and  shall  pay  a 
filing  fee  thereon  of  one  dollar  for  each  one  thousand  dollars  or 
fraction  thereof  of  such  increase,  together  with  a  recording  fee 
of  ten  cents  per  one  hundred  words,  but  not  less  than  fifty  cents. 
The  secretary  of  state  shall  upon  request  furnish  a  blank  upon 
which  to  make  report  of  such  increase  of  capital  in  use  within 
the  state.  Any  corporation  transacting  business  in  this  state 
prior  to  the  first  day  of  September,  eighteen  hundred  eighty-six, 
shall  be  exempt  from  the  payment  of  the  fees  required  under  the 
provisions  of  this  section.  The  secretary  of  state  shall  thereupon 
issue  to  such  corporation,  a  permit,  in  such  form  as  he  may  pre- 
scribe, for  the  transaction  of  the  business  of  such  corporation, 
and  upon  the  receipt  of  such  permit  said  corporation  shall  be 
permitted  and  authorized  to  conduct  and  carry  on  its  business 
in  this  state.  No  foreign  stock  corporation  doing  business  in 
this  state  shall  maintain  any  action  in  this  state  upon  any  con- 
tract made  by  it  in  this  state  unless  prior  to  the  making  of  such 
contract  it  shall  have  procured  such  permit.  This  prohibition 
shall  also  apply  to  any  assignee  of  such  foreign  stock  corpora- 
tion and  to  any  person  claiming  under  such  assignee  of  such  for- 
eign corporation  or  under  either  of  them.  [39  G.  A.,  S.  F.  413; 
34  G.  A.,  ch.  75,  §  1;  33  G.  A.,  ch.  104,  §  7 ;  21  G.  A.,  ch.  76,  §  l.j 

See.  1638.  Permit.  No  foreign  corporation  which  has  not  in 
good  faith  complied  with  the  provisions  of  this  chapter  and 
taken  out  a  permit  shall  possess  the  right  to  exercise  the  power 
of  eminent  domain,  or  exercise  any  of  the  rights  and  privileges 
conferred  upon  corporations,  until  it  has  so  complied  herewith  and 
taken  out  such  permit.     [Same,  §  2.] 

Sec.  1639.  Penalty.  Any  foreign  corporation  that  shall  carry 
on  its  business  in  violation  of  the  provisions  of  this  chapter  in 
the  state  of  Iowa,  by  its  officers,  agents  or  otherwise,  without 


APPENDIX   ( Corporation K)  179 

having  complied  with  this  statute  and  taken  out  and  having  a 
valid  permit,  shall  forfeit  and  pay  to  the  state,  for  each  and 
every  day  in  which  such  business  is  transacted  and  carried  on, 
the  sum  of  one  hundred  dollars,  to  be  recovered  by  suit  in  any 
court  having  jurisdiction;  and  any  agent,  officer  or  employe  who 
shall  knowingly  act  or  transact  such  business  for  such  corpora- 
tion, when  it  has  no  valid  permit  as  provided  herein,  shall  be 
guilty  of  a  misdemeanor,  and  for  such  offense  shall  be  fined  not  to 
exceed  one  hundred  dollars,  or  be  imprisoned  in  the  county  jail 
not  to  exceed  thirty  days,  or  b}^  both  such  fine  and  imprisonment, 
and  pay  all  costs  of  prosecution.  Nothing  contained  in  this  chap- 
ter shall  relieve  any  person,  company,  corporation,  association 
or  partnership  from  the  performance  of  any  duty  or  obligation 
now  enjoined  upon  or  required  of  it,  or  from  the  payment  of  any 
penalty  or  liability  created  by  the  statutes  heretofore  in  force, 
and  all  foreign  corporations,  and  the  officers  and  agents  thereof, 
doing  business  in  this  state  shall  be  subject  to  all  the  liabilities, 
restrictions  and  duties  that  are  or  may  be  imposed  upon  corpora- 
tions of  like  character  organized  under  the  general  laws  of  this 
state,  and  shall  have  no  other  or  greater  powers.     [Same,  §  4.] 

GENERAL    CORPORATION    PROVISIONS 

Section  1640.  Dissolution — ^receiver.  .  Courts  of  equity  shall 
have  full  power,  on  good  cause  shown,  to  dissolve  or  close  up  the 
business  of  any  corporation,  and  to  appoint  a  receiver  therefor, 
who  shall  be  a  resident  of  the  state  of  Iowa.  An  action  therefor 
may  be  instituted  by  the  attorney  general  in  the  name  of  the 
state,  reserving,  however,  to  the  stockholders  and  creditors  all 
rights  now  possessed  by  them. 

Sec.  1641.  Ownership  of  property.  Corporations  organized  in 
any  foreign  country  or  corporations  organized  in  this  country, 
the  stock  of  which  is  owned  in  whole  or  in  part  by  non-resident 
aliens,  shall  have  the  same  rights,  powers  and  privileges  with 
regard  to  the  purchase  and  ownership  of  real  estate  in  this  state 
as  are  granted  to  nonresident  aliens  in  section  twenty-eight  hun- 
dred ninety  of  the  code.     [30  G.  A.,  ch.  54.] 

Sec.  1641-a.  Right  to  vote  stock — attachment.  Every  execu- 
tor, administrator,  guardian  or  trustee  shall  represent  the  stock 
in  his  hands  at  all  corporate  meetings,  and  may  vote  the  same  as 
a  stockholder;  and  every  person  who  shall  pledge  his  stock,  in 
the  absence  of  a  written  agreement  to  the  contrary,  may  repre- 
sent the  same  at  all  such  meetings  and  vote  accordingly.  The 
owner  of  corporate  stock  levied  upon  by  attachment  or  other  pro- 
ceeding shall  have  the  right  to  vote  the  same  at  all  corporate 
meetings,  until  such  time  as  that  he  shall  have  been  divested  of 
his  title  thereto  bv  execution  sale.    But  nothing:  contained  in  this 


180  APPENDIX   (Corporations) 

section  shall  in  any  manner  conflict  with  any  provision  in  the 
articles  of  incorporation,  or  the  by-laws  of  the  corporation  issu- 
ing the  stock.     [30  G.  A.,  ch.  55,] 

Sec.  1641-b.  Capital  stock — how  issued — executive  council  to 
fix  value — certain  elements  of  value  considered.  That  from  and 
after  the  passage  of  this  act  no  corporation  organized  under  the 
laws  of  the  state  of  Iowa,  except  building  and  loan  associations 
as  defined  and  provided  for  in  chapter  thirteen,  title  nine  of  the 
code,  shall  issue  any  capital  stock  or  any  certificate  or  certificates 
of  shares  of  capital  stock,  or  any  substitute  therefor,  until  the 
corporation  has  received  the  par  value  thereof.'  If  it  is  proposed 
to  pay  for  said  capital  stock  in  property  or  in  any  other  thing 
than  money,  the  corporation  proposing  the  same  must,  before 
issuing  capital  stock  in  any  form,  apply  to  the  executive  council 
of  the  state  of  Iowa  for  leave  so  to  do.  Such  application  shall 
state  the  amount  of  capital  stock  proposed  to  be  issued  for  a 
consideration  other  than  money,  and  set  forth  specifically  the 
property  or  other  thing  to  be  received  in  payment  for  such  stock. 
Thereupon,  it  shall  be  the  duty  of  the  executive  council  to  make 
investigation,  under  such  rules  as  it  may  prescribe,  and  to  as- 
certain the  real  value  of  the  property  or  other  thing  which  the 
corporation  is  to  receive  for  the  stock;  and  shall  enter  its  find- 
ing, fixing  the  value  at  which  the  corporation  may  receive  the 
same  in  payment  for  capital  stock ;  and  no  corporation  shall  issue 
capital  stock  for  the  said  property  or  thing  in  a  greater  amount 
than  the  value  so  fixed  and  determined  by  the  executive  council. 
Provided  that  for  the  purpose  of  encouraging  the  construction 
of  new  steam  or  electric  railways,  and  manufacturing  industries 
within  this  state,  the  labor  performed  in  effecting  the  organiza- 
tion and  promotion  of  such  corporation,  and  the  reasonable  dis- 
count allowed  or  reasonable  commission  paid  in  negotiating  and 
effecting  the  sale  of  bonds  for  the  construction  and  equipment  of 
such  railroad  or  manufacturing  plant,  shall  be  taken  into  con- 
sideration as  elements  of  value  in  fixing  the  amount  of  capital 
stock  that  may  be  issued.  [34  G.  A.,  ch.  76,  ^ ;  32  G.  A.,  ch.  71, 
§  1.1 

[The  above  section  is  made  applicable  to  certain  public  utility  corpora- 
tions by  §  1641-1  herein. — Editor.] 

Sec.  1641-c.  Certificate  filed  with  secretary  of  state.  It  shall 
be  the  duty  of  every  corporation  to  file  a  certificate  under  oath 
with  the  secretary  of  state,  within  ten  days  after  the  issuance 
of  any  capital  stock,  stating  the  date  of  issue,  the  amount  issued, 
the  sum  received  therefor,  if  payment  be  made  in  money,  or  the 
property  or  thing  taken,  if  such  be  the  method  of  payment.  [32 
G.  A.,  ch.  71,  §  2.] 

[The  above  section  is  made  applicable  to  certain  public  utility  corpora- 
tions by  §  1641-1  herein. — Editor.] 


APPENDIX   (Corporations)  l8l 

Sec.  1641-d.  Cancellation  of  stock — reimbursement.  The  capi- 
tal stock  of  any  corporation  issued  in  violation  of  the  terms  and 
provisions  hereof  shall  be  void,  and  in  a  suit  brought  by  the  at- 
torney general  on  behalf  of  the  state  of  Iowa  in  any  court  having 
jurisdiction,  a  decree  of  cancellation  shall  be  entered ;  and  if  the 
corporation  has  received  any  money  or  thing  of  value  for  the  said 
stock,  such  money  or  thing  of  value  shall  be  returned  to  the  indi- 
vidual, firm,  company  or  corporation  from  whom  it  was  received, 
and  if  represented  by  labor  or  other  service  of  intangible  nature, 
the  value  thereof  shall  constitute  a  claim  against  the  corporation 
issuing  stock  in  exchange  therefor.  [33  G.  A.,  ch.  104,  §  4;  32 
G.  A.,  ch.  71,  §  3.] 

Sec.  1641-e.    Dissolution  of  corporation — distribution  of  assets. 

Any  corporation  violating  the  provisions  hereof  shall,  upon  the 
application  of  the  attorney  general,  in  behalf  of  the  state,  made 
to  any  court  of  competent  jurisdiction,  be  dissolved,  its  affairs 
wound  up,  and  its  assets  distributed  among  the  stockholders 
other  than  those  who  have  received  the  stock  so  unlawfully  is- 
sued.    [32  G.  A.,  ch.  71,  §  4.] 

Sec.  1641-f.  Penalty.  Any  officer,  agent  or  representative  of 
a  corporation  who  violates  any  of  the  provisions  hereof  shall, 
upon  conviction,  be  fined  not  less  than  two  hundred  dollars  nor 
more  than  ten  hundred  dollars,  and  be  imprisoned  in  the  county 
jail  for  not  less  than  thirt}^  days  nor  more  than  six  months.  [32 
G.  A.,  ch.  71,  §  5.] 

Sec.  1641-g.  False  statements — penalty.  Every  director,  of- 
ficer or  agent  of  any  corporation  or  joint-stock  association,  who 
knowingly  concurs  in  making,  publishing  or  posting,  either  gen- 
erally or  privately  to  the  stockholders  or  other  persons,  any  writ- 
ten report,  exhibit,  or  statement  of  its  affairs  or  pecuniary  con- 
dition, or  book  or  notice  containing  any  material  statement  which 
is  false,  or  any  untrue  or  wilfully  or  fraudulently  exaggerated 
report,  prospectus,  account,  statement  of  operations,  values,  busi- 
ness, profits,  expenditures,  or  prospects,  or  any  other  paper  or 
document  intended  to  produce  or  give,  or  having  a  tendency  to 
produce  or  give,  the  shares  of  stock  in  such  corporation  a  greater 
value  or  a  less  apparent  or  market  value  than  they  really  possess, 
is  guilty  of  a  felony,  and  upon  conviction  thereof  shall  be  pun- 
ished by  imprisonment  in  the  penitentiary  not  to  exceed  one 
year,  or  by  imprisonment  in  the  county  jail  not  to  exceed  six 
months  or  a  fine  not  exceeding  five  hundred  dollars.  [32  G.  A., 
ch.  72.1 

Sec.  1641-h.  Political  contributions  prohibited.  It  shall  be 
unlawful  for  any  corporation  doing  business  within  the  state,  or 
any  officer,  agent  or  representative  thereof  acting  for  such  cor- 
poration, to  give  or  contribute  any   money,  property,  labor  or 


182  APPENDIX  (Corporations) 

thing  of  value,  directly  or  indirectly,  to  any  member  of  any  polit- 
ical committee,  political  party,  or  employe  or  representative 
thereof,  or  to  any  candidate  for  any  public  office  or  to  the  rei)re- 
sentative  of  such  candidate,  for  campaign  expenses  or  for  any 
political  purpose  whatsoever,  or  to  any  person,  partnership  or 
corporation  for  the  purpose  of  influencing  or  causing  such  per- 
son, partnership  or  corporation  to  influence  any  elector  of  the 
state  to  vote  for  or  against  any  candidate  for  public  office  or  for 
nomination  for  public  office  or  to  any  public  officer  for  the  pur- 
pose of  influencing  his  official  action,  but  nothing  in  this  act  shall 
be  construed  to  restrain  or  abridge  the  liberty  of  the  press  or 
prohibit  the  consideration  and  discussion  therein  of  candidacies,  * 
nominations,  public  officers  or  iDolitical  questions.  [32  G.  A., 
ch.  73,  §  1.] 

Sec.  1641-i.  Solicitation  from  corporations  prohibited.  It  shall 
be  unlawful  for  any  member  of  any  political  committee,  political 
party,  or  employe  or  representative  thereof,  or  candidate  for 
any  office  or  the  representative  of  such  candidate,  to  solicit,  re- 
quest or  knowingly  receive  from  any  corporation  or  any  officer, 
agent  or  representative  thereof,  any  money,  property  or  thing 
of  value  belonging  to  such  corporation,  for  campaign  expenses 
or  for  any  political  purpose  whatsoever.     [32  G.  A.,  ch,  73,  §  2.] 

Sec.  1641- j.  Testimony — immunity  from  prosecution.  No  per- 
son, and  no  agent  or  officer  of  any  corporation  within  the  pur- 
view of  this  act  shall  be  privileged  from  testifying  in  relation 
to  anything  herein  prohibited;  and  no  person  having  so  testified 
shall  be  liable  to  any  prosecution  or  punishment  for  any  offense 
concerning  which  he  is  required  to  give  his  testimony,  provided 
that  he  shall  not  be  exempted  from  prosecution  and  punishment 
for  perjury  committed  in  so  testifying.     [32  G.  A.,  ch.  73,  §  3.] 

Sec.  1641-k.  Penalty.  Any  person  convicted  of  a  violation 
of  any  of  the  provisions  of  this  act  shall  be  punished  by  impris- 
onment in  the  county  jail  not  less  than  six  months  or  more  than 
one  year  and  in  the  discretion  of  the  court,  by  fine  not  exceeding 
ten  hundred  dollars.     [32  G.  A.,  ch.  73,  §  4.] 

Sec.  1641-1.  Capital  stock  of  foreign  public  utility  corporations 
— how  issued — laws  made  applicable.  Section  sixteen  hundred 
forty-one-b  of  the  supplement  to  the  code,  1907,  as  amended  by 
chapter  seventy-six  of  the  acts  of  the  thirty-fourth  general  assem- 
blj^  of  Iowa,  section  sixteen  hundred  forty-one-c  of  the  supple- 
ment to  the  code,  1907,  and  section  sixteen  hundred  thirty-seven 
of  the  code  as  amended  by  chapter  one  hundred  and  four  of  the 
acts  of  the  thirty-third  general  assembly  of  Iowa  and  by  chapter 
seventy-five  of  the  acts  of  the  thirty-fourth  general  assembly  of 
Iowa,  are  hereby  made  applicable  to  any  foreign  corporation 
w^hich  directly  or  indirectly  owns,  uses,  operates,  controls  or  is 


APPENDIX   (Corporations)  183 

concerned  in  the  operation  of  any  public  gasworks,  electric  light 
plant,  heating  plant,  waterworks,  interurban  or  street  railway 
located  within  the  state  of  Iowa  or  the  carrjing  on  of  any  gas, 
electi-ic  light,  electric  power,  heating  business,  waterworks,  inter- 
urban or  street  railway  business  within  the  state  of  Iowa  or  that 
owns  or  controls,  directly  or  indirectly,  any  of  the  capital  stock 
of  any  corporation  which  owns,  uses,  operates  or  is  concerned  in 
the  operation  of  any  public  gasworks,  electric  light  plant,  electric 
power  plant,  heating  plant,  waterworks,  interurban  or  street 
railway  located  within  the  state  of  Iowa  or  any  foreign  corpora- 
tion that  exercises  any  control  in  any  way  or  in  any  manner 
over  any  of  said  works,  plants,  interurban  or  street  railways  or 
the  business  carried  on  by  said  works,  plants,  interurban  or 
street  railways  by  or  through  the  ownership  of  the  capital  stock 
of  any  corporation  or  corporations  or  in  any  other  manner  what- 
soever, and  the  ownership,  operation  or  control  of  any  such  works, 
plants,  interurban  or  street  railways  or  the  business  carried  on 
by  any  of  such  works  or  plants  or  the  ownership  or  control  of 
the  capital  stock  in  any  corporation  OAvnins:  or  operating  any  of 
such  works,  plants,  interurban  or  street  railways  by  any  foreign 
corporation  in  violation  of  the  provisions  of  this  act  is  hereby 
declared  to  be  unlawful.     [35  G.  A.,  ch.  136,  §  1.] 

Sec.  1641-m.     Holdings  companies — provisions  made  applicable 

to.  The  provisions  hereof  are  hereby  made  applicable  to  all  cor- 
porations, including  so-called  '^ holding  companies''  which  by  or 
through  the  ownership  of  the  capital  stock  in  any  other  corpora- 
tion or  corporations  or  a  series  of  corporations  owning  or  con- 
trolling the  capital  stock  of  each  other  can  or  may  exercise  con- 
trol over  the  capital  stock  of  any  corporation  which  owns,  uses, 
operates  or  is  concerned  in  the  operation  of  any  public  gasworks, 
electric  light  plant,  electric  power  plant,  heating  plant,  water- 
works, interurban  or  street  railway  located  in  the  state  of  loAva, 
or  the  business  carried  on  bv  such  works  or  plants.  [35  G.  A., 
ch.  136,  §  2.1 

Sec.  1641-n.  Annual  report — fee.  All  corporations  subject  to 
the  provisions  of  this  act  are  hereby  required  to  pay  the  annual 
fee  and  to  make  the  annual  report  in  the  form  and  manner  and 
at  the  time  as  specified  in  chapter  one  hundred  and  five  of  the 
acts  of  the  thirtv-third  general  assemblj"  of  Iowa.  [3o  G.  A.,  ch. 
136,  §  2-a.] 

Sec.  1641-0.  Sale  of  capital  stock — obligations.  The  pro- 
visions of  this  act  are  hereby  made  applicable  to  the  sale  of  its 
own  capital  stock  by  any  corporation  subject  to  the  provisions  of 
this  act,  whether  said  ca])ital  stock  has  been  heretofore  issued 
by  said  corporation  or  not,  including  the  sale  of  so-called  ''treas- 
.ury  stock"  or  stock  of  the  corporation  in  the  hands  of  a  trus- 


184  APPENDIX   (Corporations) 


tee  or  where  the  corporation  participates  in  any  way  or  manner 
in  the  benefits  of  said  sales,  and  also  to  the  sale  of  any  of  the 
obligations  of  any  corporation  subject  to  the  provisions  of  this 
act,  the  payment  of  which  is  secured  by  the  deposit  or  pledge  of 
any  of  the  capital  stock  of  said  corporation.     [35  G.  A.,  ch.  136^ 

§  3.] 

Sec.  1641-p.  Violations — stock  void.  Shares  of  capital  stock 
of  any  corporation  owned  or  controlled  in  violation  of  the  pro- 
visions of  this  act  shall  be  void  and  the  holder  thereof  shall  not 
be  entitled  to  exercise  the  powers  of  a  shareholder  of  said  cor- 
poration or  permitted  to  participate  in  or  be  entitled  to  any  of  the 
benefits  accruing  to  shareholders  of  said  corporation,  and  section 
sixteen  hundred  thirty-nine  of  the  code  is  hereby  made  appli- 
cable to  violations  of  the  provisions  of  this  act;  and  courts  and 
juries  shall  construe  this  act  so  as  to  prevent  evasion  and  to  ac- 
complish the  intents  and  purposes  hereof.     [35  G.  A.,  ch.  136,  §  4.] 

Sec.  1641-q.  Dissolution — powers  of  courts  of  equity — receiver. 
Courts  of  equity  shall  have  full  power  to  dissolve,  close  up  or 
dispose  of  any  business  or  property  owned,  operated  or  controlled 
in  violation  of  the  provisions  of  this  act ;  to  dissolve  any  corpora- 
tion owning  or  controlling  the  capital  stock  of  anv  other  corpor- 
ation in  violation  of  the  provisions  of  this  act  and  to  close  up  or 
dispose  of  the  business  or  property  of  said  corporation;  and  if 
the  court  finds  that,  in  order  to  carry  out  the  purposes  of  this  act, 
it  is  necessary  so  to  do,  it  may  dissolve  the  corporation  issuing 
the  stock  which  is  owned  in  violation  of  the  provisions  of  this 
act,  close  up  the  business  of  said  corporation  and  dispose  of  its 
property,  and  the  court  may  -also  appoint  a  receiver  who  shall 
be  a  resident  of  Iowa  for  any  business  or  for  any  corporation 
which  has  violated  the  provisions  of  this  act  or  of  the  corpora- 
tion issuing  the  stock  which  is  held  in  violation  of  this  act.  Any 
action  to  enforce  the  provisions  of  this  act  may  be  instituted  by 
the  attorney  general  in  the  name  of  the  state  of  Iowa  or  by 
a  citizen  in  the  name  of  the  state  of  Iowa  at  his  own 
owning  capital  stock  not  held  in  violation  of  this  act  all  rights 
possessed  by  them.     [35  G.  A.,  ch.  136,  §  5.] 

Sec.  1641-r.  Acts  in  conflict  repealed.  All  acts  and  parts  of 
acts,  so  far  as  the  same  are  in  conflict  herewith,  are  hereby  re- 
pealed.    [35  G.  A.,  ch.  136,  §  6.] 


WORIOIEN'S  COMPENSA- 
TION LAW 


Workmen's  Compensation  Law 


TEXT  OF  STATUTE. 

Title  XII,  chapter  8-a,  supplement  to  the  code,  1913,  !as 
amended  b.y  the  Thirty-seventh  and  Thirtj^-eighth  General 
Assemblies. 

PAET  I. 

Section  2477-m.  Employers — employes — exceptions,  (a)  Pre- 
sumption— employes  excepted.  Except  as  by  this  act  otherwise 
provided,  it  shall  be  conclusively  presumed  that  every  employer 
as  defined  by  this  act  has  elected  to  provide,  secure  and  paj^ 
compensation  according  to  the  terms,  conditions,  and  provisions 
of  this  act  for  any  and  all  personal  injuries  sustained  by  an 
employe  arising  out  of  and  in  the  course  of  the  employment; 
and  in  such  cases  the  employer  shall  be  relieved  from  other 
liability  for  recovery  of  damages  or  other  compensation  for 
such  personal  injury,  unless  by  the  terms  of  this  act  otherwise 
provided ;  but  this  act  shall  not  apply  to  any  household  or 
domestic  servant,  farm  or  other  laborer  engaged  in  agricultural 
pursuits,  nor  persons  whose  employment  is  of  a  casual  nature. 
The  provisions  of  this  act  shall  not  apply  as  between  a  municipal 
corporation,  city  or  town  and  any  person  or  persons  receiving 
any  benefits  under,  or  who  may  be  entitled  to,  benefits  from  any 
''firemen's  pension  fund"  or  "policemen's  pension  fund"  of  any 
municipal  corporation,  city  or  town. 

The  act  held  constitutional  in  Hunter  vs.  Colfax  Consolidated  Coal 
Company— 154  N.  W.   1037. 

An  employe  while  operating  as  an  engineer  and  laborer  a  corn  shredder 
for  an  employer  under  contract  with  a  farmer  to  do  such  work  is  a 
"farm    laborer"  and  not  covered  by  the  act. 

Slycord  vs.  Horn  162  N.  W.  249. 

(b).  Compulsory.  Where  the  state,  county,  municipal  corpora- 
tion, school  district,  cities  under  special  charter  or  commission 
form  of  government  is  the  employer,  the  terms,  conditions  and 
provisions  of  this  act  for  the  payment  of  compensation  and 
amount  thereof  for  such  injury  sustained  by  an  employe  of  such 
employer  shall  be  exclusive,  compulsory  and  obligatory  upon 
both  employer  and  employe. 


APPENDIX   (Compensation)  18? 

(c).  Rejection  of  terms — reasons  for.  An  employer  having 
the  right  under  the  provisions  of  this  act  to  elect  to  reject  the 
terms,  conditions  and  provisions  thereof  and  (who)  in  such  case 
exercises  the  right  in  the  manner  and  form  by  this  act  provided, 
such  employer  shall  not  escape  liability  for  persoral  injury  sus- 
tained by  an  employe  of  such  employer  when  the  injury  sustained 
arises  out  of  and  in  the  usual  course  of  the  employment  because : 

(1.)  The  employe  assumed  the  risks  inherent  in  or  incidental 
to  or  arising  out  of  his  or  her  employment,  or  the  risks  arising 
from  the  failure  of  the  employer  to  provide  and  maintain  a 
reasonably  safe  place  to  work,  or  the  risks  arising  from  th6 
failure  of  the  employer  to  furnish  reasonably  safe  tools  or  appli- 
ances, or  because  the  employer  exercised  reasonable  care  iil 
selecting  reasonably  competent  employes  in  the  business; 

(2.)  That  the  injury  was  caused  by  the  negligence  of  the 
co-employe ; 

(3.)  That  the  employe  was  negligent  unless  and  except  it  shall 
appear  that  such  negligence  was  wilful  and  with  intent  to  cause 
the  injury;  or  the  result  of  intoxication  on  the  part  of  the  injured 
party ; 

(4.)  [d].  Negligence  presumed — burden  of  proof — notices  of 
election  to  reject — presumption  on  failure  to  give  notice.     In 

actions  by  an  employe  against  an  employer  for  personal  injury 
sustained  arising  out  of  and  in  the  course  of  the  employment 
where  the  employer  has  elected  to  reject  the  provisions  of  this 
act,  it  shall  be  presumed  that  the  injury  to  the  employe  was  the 
direct  result  and  growing  out  of  the  negligence  of  the  employer ; 
and  that  such  negligence  was  the  proximate  cause  of  the  injury; 
and  in  such  cases  the  burden  of  proof  shall  rest  upon  the  employer 
to  rebut  the  presumption  of  negligence. 

The  provisions  of  the  act  establishing  the  presumption  that  tlie  injury 
was  the  result  of  the  employer's  negligence  does  not  abolish  the  defence 
of  contributory  negligence.  It  merely  forces  the  employer  to  affirmatively 
show  that  he  is  blameless. 

Hunter  vs.  Colfax  Consolidated  Coal  Co.,  154  N.  W.  1037. 

Every  such  emploj^er  shall  be  conclusively  presumed  to  have 
elected  to  provide,  secure  and  pay  compensation  to  employes 
for  injuries  sustained  arising  out  of  and  in  the  course  of  the 
employment  according  to  the  provisions  of  this  act,  unless  and 
until  notice  in  writing  of  an  election  to  the  contrary  shall  have 
been  given  to  the  employes  by  posting  the  same  in  some  conspic- 
uous place  at  the  place  where  the  business  is  carried  on,  and 
also  by  filing  notice  with  the  Iowa  industrial  commissioner  with 
return  thereon  by  affidavit  showing  the  date  that  notice  was 
posted  as  by  this  act  provided.  Provided,  however,  that  any 
employer  beginning  business  after  the  taking  effect  of  this  act 


18§  APPENDIX   (Compensation) 

and  giving  notice  at  once  of  his  desire  not  to  come  under  the 
provisions  of  this  act  shall  not  be  considered  as  under  the  act ; 
provided,  however,  that  such  employer  shall  not  be  relieved  of 
the  payment  of  compensation  as  by  this  act  provided  until  thirty 
days  after  the  filing  of  such  notice  with  the  Iowa  industrial  com- 
missioner, Avhicli  notice  shall  be  substantially  in  the  following 
form: 

EMPLOYERS'    NOTICE    TO    REJECT 

To  the   employes   of  the   undersigned,   and   the   Iowa  industrial   commis- 
sioner: 

You  and  each  of  you  are  hereby  notified  that  the  undersigned  rejects 
the  terms,  conditions  and  provisions  to  provide,  secure  and  pay  compen- 
sation to  employes  of  the  undersigned  for  injuries  received  as  provided 
in  the  acts  of  the (thirty-fifth)  general  assembly  known  as  chap- 
ter  (one   hundred   forty-seven),   and   elects  to  pay   damages  for 

personal  injuries  received  by  such  employe  under  the  common  law  and 
statutes  of  this  state  modified  by  subdivisions  one,  two,  three  and  four 

of  section  one,  chapter (one  hundred  forty-seven)    of 

the  acts  of  the (thirty-fifth)  general  assembly  and  acts  amenda- 
tory thereto. 

Signed 

State  of  Iowa,   County,     ss : 

The  undersigned  being  first  duly  sworn  deposes  and  says  that  a  true, 

correct  and  verbatim  copy  of  the  foregoing  notice  was  on  the 

day   of ,    19..,.,   posted   at 

(State  fully  place  where  posted) 

Subscribed  and  sworn  to  before  me  by , 

this day  of ,   19 


Notary  Public. 

The  employer  shall  keep  such  notice  posted  in  some  conspicuous 
place  which  shall  applj^  to  the  employes  subsequently  employed 
by  the  employer,  with  the  same  force  and  effect  and  to  the 
same  extent  and  in  like  manner  as  emploj^es  in  the  employ  at 
the  time  the  notice  was  given. 

Where  the  employer  and  employe  have  not  given  notice  of  an 
election  to  reject  the  terms  of  this  act,  every  contract  of  hire, 
express  or  implied,  shall  'be  construed  as  an  implied  agreement 
between  them  and  a  part  of  the  contract  on  the  part  of  the 
employer  to  provide,  secure  and  pay,  and  on  the  part  of  the 
employe  to  accept  compensation  in  the  manner  as  by  this  act 
provided  for  all  personal  injuries  sustained  arising  out  of  and 
in  the  course  of  the  emplojanent. 

An  employer,  by  his  void  contract  illegally  employing  a  minor  under 
14  yeaio  of  age,  even  though  the  minor  makes  misstatement  of  age  in 
order  to  secure  work,  can  not  limit  his  liability  for  any  injury  to  the 
compensation  fixed  by  the  act,  to  which  the  minor  was  incapable  of  giving 
consent. 

Sechlick  vs.  Harris-Emery  Company,  169  N.  W.  325. 

Sec.  2477-ml.  Wilful  injury — intoxication.  No  compensation 
under  this  act  shall  be  allowed  for  an  injury  caused : 


APPENDIX    (Compensatioi})  1S9 

(a).  By  tlie  employe's  wilful  intention  to  injure  himself  or 
to  wilfully  injure  another;  nor  shall  compensation  be  paid  to 
an  injured  employe  if  injury  .is  sustained  where  intoxication  of 
the  employe  was  the  proximate  cause  of  the  injury. 

Sec.  2477-m2.  Rights  of  employe — notice  to  reject,  (a)  Exclu- 
sive of  other  rights — presumption — notice.  The  rights  and 
remedies  provided  in  this  act  for  an  employe  on  account  of 
injury  shall  be  exclusive  of  all  other  rights  and  remedies  of  such 
emploA^e,  his  personal  or  legal  representatives,  dependents  or  next 
of  kin,  at  common  law  or  otherwise,  on  account  of  such  injury, 
and  all  employes  affected  by  this  act  shall  be  conclusively  pre- 
sumed to  have  elected  to  take  compensation  in  accordance  with 
the  terms,  conditions  and  provisions  of  this  act  until  notice  in 
writing  shall  have  been  served  upon  his  employer,  and  also  on 
tlie  Iowa  industrial  commissioner,  with  return  thereon  by  affidavit 
showing  the  date  upon  which  notice  was  served  upon  the 
employer. 

A  servant,  having  accepted  compensation  under  the  act,  can  have  no 
standing  in  court  to  assert  the  employer's  further  liability  to  him  for 
exemplary  damages  on  the  ground  of  gross  and  reckless  negligence. 

Striclken  vs.  Pearson  Construction  Company,  169  N.  W.  673. 

(b).    Rejection — procedure — oath — form — undue  influence.    In 

the  event  such  employe  elects  to  reject  the  terms,  conditions  and 
provisions  of  this  act,  the  rights  and  remedies  thereof  shall  not 
apply  where  an  emploj^e  brings  an  action  or  takes  proceedings  to 
recover  damages  or  compensation  for  injuries  received  growing 
out  of  and  in  the  course  of  his  employment,  except  as  otherwise 
provided  by  this  act;  and  in  such  actions  where  the  employe  has 
rejected  the  terms  of  this  act  the  employer  shall  have  the  right 
to  plead  and  rely  upon  am^  and  all  defenses,  including  those  of 
common  law,  and  the  rules  and  defenses  of  contributory  negli- 
gence, assumption  of  risk  and  fellow-servant  shall  apply  and  be 
available  to  the  employer  as  hy  statute  authorized  unless  other- 
wise provided  in  this  act.  Provided,  however,  that  if  an  employe 
sustains  an  injury  as  the  result  of  the  employer's  failure  to 
furnish  or  failure  to  exercise  reasonable  care  to  keep  or  main- 
tain any  safety  device  required  by  statute  or  rule,  or  violation  of 
any  of  the  statutory  provisions  or  rules  and  regulations  now  or 
hereafter  in  force  relating  to  safety  of  employes,  the  doctrine  of 
assumed  risk  in  such  case  growing  out  of  the  negligence  of  the 
employer  shall  not  apply  or  be  available  as  defensive  matter  to 
such  offending  party.  The  notice  required  to  be  given  by  an 
employe  shall  be  substantially  in  the  following  form: 


13 


190  APPENDIX    (Compensation) 


EMPLOYES'  NOTICE  TO  REJECT 

To and    the 

(Name  of  employer) 
Iowa  industrial  commissioner: 

You  and  each  of  you  are  hereby  notified  that  the  undersigned  hereby 
elects  to  reject  the  terms,  conditions  and  provisions  of  an  act  for  the  pay- 
ment of  compensation  as  provided  by  (chapter  one  hundred  forty-seven 
of)  the  acts  of  the (thirty-fifth;  general  assembly  and  acts  amenda- 
tory thereto,  and  elects  to  rely  upon  the  common  law  as  modified  by 
section  three  of  (chapter  one  hundred  forty-seven  of)  the  acts  of  the 
(thirty-fifth)  general  assembly  for  the  right  to  recover  for  per- 
sonal injury  which  I  may  receive,  if  any,  growing  out  of  and  arising 
from  the  employment  while  in  line  of  duty  for  my  employer  above  named. 

Dated  this day  of ,19 

Signed 

State  of  Iowa County,         ss : 

The    undersigned    being   first   duly   sworn    deposes   and    says   that   the 

written  notice  was  on  the day  of ,  19 .... , 

served  on  the  within  named  employer  of  the  undersigned  by  delivering  to 
a  true,  correct  and  verbatim  copy  thereof. 


(Name   of  person   served) 

Subscribed  and  sworn    (or  offirmed)   to  before  me  by  the  said 

this day   of ,   19 . . 


Notary    Public. 

Ill  any  case  where  an  employe  or  one  who  is  an  applicant  for 
employment  elects  to  reject  the  terms,  conditions  and  provisions 
of  this  act,  he  shall,  in  addition  to  the  notice  required  by  sub- 
division (b)  of  section  three  of  this  act,  state  in  an  affidavit  to  be 
filed  with  said  notice  who,  if  any  person,  requested,  suggested,  or 
demands  of  such  person  to  exercise  the  right  to  reject  the  provi- 
sions of  this  act.  And  if  request,  suggestion,  or  demand  has 
been  made  of  such  employe  by  aiw  person,  such  employe  shall 
give  and  state  the  name  of  the  person  who  made  the  request, 
suggestion,  or  demand,  and  all  of  the  circumstances  relating 
thereto,  the  date  and  place  when  and  where  made,  and  persons 
present,  and  if  it  be  found  that  the  employer  of  such  employe, 
or  an  employer  to  whom  an  applicant  for  employment,  or  an}^ 
person  a  member  of  the  firm,  association,  corporation,  or  agent 
or  official  of  such  employer,  made  a  request,  suggestion  or 
demand  of  such  employe  or  applicant  for  employment  to  reject 
the  terms,  conditions  and  provisions  of  this  act,  such  request, 
suggestion  or  demand  if  made  under  such  conditions,  sliall  be 
conclusively  presumed  to  have  been  sufficient  to  have  unduly 
influenced  such  employe  or  an  applicant  for  employment  to 
exercise  the  right  to  reject  the  terms  of  this  act,  and  the  rejec- 
tion made  under  such  circumstances  shall  be  conclusively  pre- 
sumed to  have  been  procured  through  fraud  and  thereby  fraud- 
ulently procured,  and  such  rejection  shall  be  null  and  void  and 
of  no  effect. 

No  person  interested  in  the  business  of  such  emploj^er,  finan- 
cialh'  or  otherwise,  shall   be  permitted   to   administer  the   oatli 


APPENDIX    (Compensation)  191 

to  the  affidavit  required  in  ease  an  employe  or  applicant  for 
employment  elects  to  exercise  the  ri^^ht  to  reject  the  provisions 
of  this  act.  And  the  person  administering  such  oath  in  making 
such  affidavit  shall  carefully  read  the  notice  and  affidavit  to 
such  person  making  such  rejection,  and  shall  explain  that  the 
purpose  of  the  notice  is  to  bar  such  person  from  recovering 
compensation  in  accordance  with  the  schedule  and  terms  of  this 
act  in  the  event  that  he  sustains  an  injury  in  the  course  of  such 
employment,  all  of  which  shall  be  shown  b}'  certificate  of  the 
person  administering  the  oath  herein  contemplated.  The  Iowa 
industrial  commissioner,  or  any  person  acting  for  such  commis- 
sioner, shall  refuse  to  file  the  notice  and  affidavit,  unless  such 
notice,  affidavit  and  certificate  fully,  and  in  detail,  comply  with 
the  requirements  hereof.  And  if  such  rejection,  affidavit  and 
certificate  is  found  insufficient  for  any  cause,  (it)  shall  be 
returned  by  mail  or  otherwise  to  the  person  who  executed  the 
instrument. 

Sec.  2477-m3.  Tenure  of  election,  (a)  Until  provisions  complied 
with.  When  the  employer  or  employe  has  given  notice  in  compli- 
ance with  this  act  electing  to  reject  the  terms  thereof  such 
election  shall  continue  and  be  in  force  until  such  employer  or 
employe  shall  thereafter  elect  to  come  under  the  provisions  of 
this  act  as  is  provided  in  subdivision  (b)  of  this  section. 

(b).  Notice — how  filed.  AVhen  an  employer  or  employe  rejects 
the  terms,  conditions  or  provisions  of  this  act,  such  party  may 
at  any  time  thereafter  elect  to  waive  the  same  by  giving  notice 
in  writing  in  the  same  manner  required  of  the  party  in  electing 
to  reject  the  provisions  of  the  act  and  which  shall  become  effec- 
tive when  filed  with  the  Iowa  industrial  commissioner. 

Notice  of  acceptance  with  Industrial  commissioner  where  employer 
had  previously  filed  notice  of  rejection,  is  not  substantial  compliance, 
without  posting  notice  of  acceptance. 

Paucher  vs.  Enterprise  Coal  Mining  Company,  164  N.  W.  1035. 

Sec.  2477-m4.  Liability  of  employer  after  election  to  reject. 
Where  the  employer  and  employe  elect  to  reject  the  terms, 
conditions  and  provisions  of  this  act,  the  liability  of  the  employer 
shall  be  the  same  as  though  the  emploj'c  had  not  rejected  the 
terms,  conditions  and  provisions  thereof. 

Sec.  2477-m5.  Subsequent  election  to  reject — security  for  com- 
pensation. An  employer  having  come  under  this  act,  who  there- 
after elects  to  reject  the  terms,  conditions  and  provisions  thereof, 
shall  not  be  relieved  from  the  payment  of  compensation  to  such 
employe  who  sustains  an  injury  in  the  course  of  the  employment 
before  the  election  to  reject  becomes  eftective;  and  in  such  cases 
the  employer  shall  be  reciuired  to  secure  the  payment  of  any 
compensation  due  or  that  may  become  due  to  such  workman, 
subject  to  the  approval  of  the  Iowa  industrial  commissioner. 


192  APPENDIX    (Compensation) 

Sec.  2477-m6.  Liability  of  other  than  that  of  employer.  Where 
an  employe  coming  under  the  provisions  of  this  act  receives  an 
injury  for  which  compensation  is  payable  under  this  act  and 
which  injury  was  caused  under  circumstances  creating  a  legal 
liability  in  some  person  other  than  the  employer,  to  pay  damages 
in  respect  thereof: 

(a^  Proceedings  against  both  parties.  The  employe  or  bene- 
ficiary may  take  proceedings  both  against  that  person  to  recover 
damages  and  against  the  employer  for  compensation,  but  the 
amount  of  the  compensation  to  which  he  is  entitled  under  this 
act  shall  be  reduced  by  the  amount  of  damages  recovered. 

•  (b)  Indemnity — subrogation.  If  the  employe  or  beneficiary 
in  such  case  recovers  compensation  under  this  act,  the  employer 
by  Avhom  the  compensation  was  paid  or  the  party  who  has  been 
called  upon  to  pay  the  compensation,  shall  be  entitled  to  indem- 
nity from  the  person  so  liable  to  pay  damages  as  aforesaid,  and 
shall  be  subrogated  to  the  rights  of  the  employe  to  recover 
therefor. 

Sec.  2477-m7.  Contract  to  relieve  not  operative.  No  contract, 
rule,  regulation  or  device  whatsoever  shall  operate  to  relieve  the 
employer,  in  whole  or  in  part,  from  any  liability  created  by  this 
act  except  as  herein  provided. 

Sec.  2477-m8.  Notice  of  injury — form — failure  to  give.  Unless 
the  employer  or  representative  of  such  employer  shall  have  actual 
knowledge  of  the  occurrence  of  an  injury,  or  unless  the  employe 
or  someone  on  his  behalf,  or  some  of  the  dependents  or  someone 
on  their  behalf,  shall  give  notice  thereof  to  the  employer  within 
fifteen  days  of  the  occurrence  of  the  injury,  then  no  compensa- 
tion shall  be  paid  until  and  from  the  date  such  notice  is  given 
or  knowledge  obtained;  but  if  notice  is  given  or  the  knowledge 
obtained  within  thirty  days  from  the  occurrence  of  the  injury,  no 
want,  failure  or  inaccuracy  of  a  notice  shall  be  a  bar  to  obtaining 
compensation,  unless  the  employer  shall  show  that  he  was  preju- 
diced b}^  such  want,  defect  or  inaccuracy,  and  then  only  to  the  ex- 
tent of  such  prejudice.  Provided,  that  if  the  emploj^e  or  benefi- 
ciary shall  show  that  his  failure  to  give  prior  notice  was  due  to 
mistake,  inadvertance,  ignorance  of  fact  or  law,  or  inability  or  to 
the  fraud,  misrepresentation  or  deceit  of  another  or  to  any  other 
reasonable  cause  or  excuse,  then  compensation  may  be  allowed, 
unless  and  then  to  the  extent  only  that  the  employer  shall  show 
that  he  was  prejudiced  by  failure  to  receive  such  notice.  Pro- 
vided, further,  unless  knowledge  is  obtained  or  notice  given 
within  ninety  clays  after  the  occurrence  of  the  injury,  no  compen- 
sation shall  be  allowed.  No  form  of  notice  shall  be  required, 
but  may  substantially  conform  to  the  following  form: 


APPENDIX    (Compensation)  193 


FORM  OF  NOTICE 

To 

You  are  hereby  notified  that  on  or  about  the day  of 

,  19 .... ,  personal  injury  was  sustained  by 

while    in    your    employ    at 

(Give  name  of  place  employed  and  point  where  located  when  injury 
occurred.) 

and    that   compensation 

will  be  claimed  therefor. 

Signed 

but  110  variation  from  this  form  of  notice  shall  be  material  if  the 
notice  is  sufficient  to  advise  the  employer  that  a  certain  employe, 
b}^  name,  received  an  injury  in  the  course  of  his  employment  on 
or  about  a  specified  time  at  or  near  a  certain  place.  Notice 
served  upon  one  (upon)  whom  an  original  notice  may  be  served 
in  civil  cases  shall  be  a  compliance  with  this  act. 

The  notice  required  to  be  given  to  the  employer  may  be  served 
by  any  person  over  sixteen  years  of  age,  who  shall  make  return 
upon  a  copy  of  the  notice,  properly  sworn  to,  showing  the  date 
of  service  where  and  upon  whom  served,  but  no  special  form 
of  the  return  of  service  of  the  notice  shall  be  required.  It  shall 
be  sufficient  if  tlie  facts  therefrom  can  be  reasonably  ascertained. 
The  return  of  service  may  be  amended  at  any  time. 

Sec.  2477-m9.  Compensation  schedule.  If  any  employe  has  not 
given  notice  to  reject  the  terms,  conditions  and  provisions  of 
this  act,  or  has  given  such  notice  and  waived  the  same  as  by  this 
act  provided,  and  the  employer  has  not  rejected  the  terms,  condi- 
tions and  provisions  of  the  act  or  has  given  such  notice  and 
waived  the  same  and  the  employe  receives  a  personal  injury 
arising  out  of  and  in  the  course  of  the  employment,  compensation 
shall  be  paid  as  herein  provided: 

(a)  The  compensation  provided  for  in  this  act  shall  be  paid  in 
accordance  with  the  schedule  unless  otherwise  provided. 

(b)  At  the  time  of  the  injury  and  thereafter  during  tlie  dis- 
ability, but  not  exceeding  four  weeks  of  incapacity,  the  employer, 
if  so  requested  by  the  employe,  or  any  one  for  him,  or  if  so 
ordered  by  the  court  or  Iowa  industrial  commissioner,  sliall  fur- 
nish reasonable  sitrgical,  medical  and  hospital  jjervices,  and 
supplies  therefor,  not  exceeding  one  hundred  ($100.00)  dollars. 
Provided,  however,  that  in  exceptional  cases,  an  application  may 
be  made  in  writing  to  the  Iowa  industrial  commissioner  for  addi- 
tional surgical,  medical  and  hospital  services,  and  supplies  there- 
for, in  which  case  a  copy  of  such  application  shall  be  mailed  to 
the  employer  or  his  insurer.  If  such  application  is  approved  by 
the  commissioner,  then  the  emploj'er  shall  furnish  such  additional 
services  and  supplies  for  such  period,  and  in  such  amount  as  the 


194  APPENDIX    (Compensation) 

Iowa   industrial   commissioner   shall   order,   but   in   no   event   to 
exceed  one  hundred  ($100.00)  dollars. 

(c)  Where  the  injury  causes  death  the  compensation  under 
this  act  shall  be  as  follows : 

The  employer  shall  in  addition  to  any  other  compensation  pay 
the  reasonable  expense  of  the  employe's  last  sickness  and  burial 
not  to  exceed  one  hundred  dollars.  If  the  employe  leaves  no 
dependents  this  shall  be  the  only  compensation. 

(d)  If  death  results  from  the  injury,  the  employer  shall  pay 
the  dependents  of  the  emploA^e  wholly  dependent  upon  his  earn- 
ings for  support  at  the  time  of  the  injury,  a  Aveekly  payment 
equal  to  sixty  per  cent  of  his  average  weekly  wages,  but  not 
more  than  fifteen  ($15.00)  dollars  nor  less  than  six  ($6.00)  dollars 
per  week  for  a  period  of  three  hundred  weeks. 

(e)  If  the  employe  leaves  dependents  only  partially  dependent 
upon  his  earnings  for  support  at  the  time  of  the  injury,  the 
weekly  compensation  to  be  paid  as  aforesaid  shall  be  equal  to 
the  same  proportion  of  the  weekly  payments  for  the  benefit  of 
persons  wholh^  dependent  as  the  amount  contributed  by  the 
emplo3^e  to  such  partial  dependents  bears  to  the  annual  earnings 
of  the  deceased  at  the  time  of  the  injury.  When  weekly  pay- 
ments have  been  made  to  an  injured  employe  before  his  death, 
the  compensation  to  dependents  shall  begin  from  the  date  of  the 
last  of  such  payments,  but  shall  not  continue  more  than  three 
hundred  weeks  from  the  date  of  the  injury. 

(f)  AVhere  injury  causes  death  to  an  employe,  a  minor, 
whose  earnings  Avere  received  by  the  parent,  the  compensation 
to  be  paid  the  parent  shall  be  two-thirds  of  the  amount  provided 
for  paA'ment  in  subdivision  (d)  section  ten  (nine). 

(g)  No  compensation  shall  be  paid  for  an  injury  which  does 
not  incapacitate  the  employe  for  a  period  of  at  least  two  weeks 
from  earning  full  wages ;  provided,  however,  that  this  provision 
shall  not  apply  to  those  injuries  resulting  in  disability  partial  in 
character  and  permanent  in  quality  and  compensated  according 
to  the  schedule  found  in  section  twenty-four  hundred  seventy- 
seven-m-9  (J)  2477-m-9-j),  supplement  to  the  code,  1913.  Should 
such  incapacity  extend  beyond  a  period  of  two  weeks,  compensa- 
tion shall  begin  on  the  fifteenth  day  after  the  injury ;  provided, 
however,  that  if  the  period  of  incapacity  extends  beyond  the 
thirty-fifth  day  following  the  date  of  the  injury,  then  the  com- 
pensation for  the  fifth  week  of  incapacity  sliall  be  increased  by 
adding  thereto  an  amount  equal  to  two-thirds  (2-3")  of  the  weekly 
compensation ;  if  the  period  of  incapacity  extends  bej^ond  the 
forty-second  (42)  day  following  the  date  of  the  injury,  then  the 
compensation  for  the  sixth  week  of  incapacity  shall  be  increased 


APPENDIX    (Compensation)  195 

by  adding  thereto  an  amount  e(iual  to  two-thirds  (2-3)  of  the 
wcM^kly  compensation;  il*  th(>  period  of  incapacity  extends  beyond 
the  forty-ninth  (49th)  day  foih)wing  llie  date  of  the  injury,  then 
the  compensation  for  the  seventh  week  of  incapacity  shall  be 
increased  by  adding  thereto  an  amount  equal  to  two-thirds  (2-3) 
of  the  weekly  compensation;  if  the  period  of  incapacity  extends 
beyond  the  forty-ninth  (49th)  day  follow^ing  the  date  of  the 
injury,  then  the  compensation  thereafter  shall  be  only  the  weekl}^ 
compensation  provided  for  in  this  law. 

(h)  For  injur}'  producing  temporarj^  disability,  sixty  per 
cent  of  the  average  weekly  wages  received  at  the  time  of  the 
injury,  subject  to  a  maximum  compensation  of  fifteen  dollars, 
and  a  minimum  of  six  dollars  per  week ;  provided,  that  if  at  the 
time  of  injury  the  employe  receives  wages  less  than  six  dollars 
per  week,  then  he  shall  receive  the  full  amount  of  wages  per 
week.  This  compensation  shall  be  paid  during  the  period  of 
such  disability,  not,  however,  beyond  three  hundred  weeks. 

(i)  For  disability  total  in  character  and  permanent  in  quality, 
sixty  per  cent  of  the  average  weekly  wages  received  at  the  time 
of  the  injury,  subject  to  a  maximum  compensation  of  fifteen 
dollars  per  week,  and  a  minimum  of  six  dollars  per  week,  pro- 
vided that  if  at  the  time  of  injury  the  employe  receives  wages 
less  than  six  dollars  per  week,  then  he  shall  receive  the  full 
amount  of  wages  per  week.  This  compensation  shall  be  paid 
during  the  period  of  such  disabilitj^,  not,  how^ever,  beyond  four 
hundred  weeks. 

(j)  For  disabilit}^  partial  in  character  and  permanent  in 
quality,  the  compensation  shall  be  as  follows : 

For  all  cases  included  in  the  following  schedule  compensation 
shall  be  paid  as  follows,  to-wit : 

(1.)  For  the  loss  of  a  thumb,  sixty  per  cent  of  daily  wages  dur- 
ing forty  weeks. 

(2.)  For  the  loss  of  a  first  finger,  commonly  called  the  index 
finger,  sixty  per  cent  of  daily  wages  during  thirty  weeks. 

(3.)  For  the  loss  of  a  second  finger,  sixty  per  cent  of  daily 
wages  during  twent3'-five  weeks. 

(4.)  For  the  loss  of  a  third  finger,  sixty  per  cent  of  daily  wages 
during  twenty  weeks. 

(5.)  For  the  loss  of  a  fourth  finger,  commonly  called  the  little 
finger,  sixty  per  cent  of  daily  wages  for  fifteen  weeks. 

(6.)  For  the  loss  of  the  first  phalange  of  the  thumb  or  of  any 
finger  shall  be  considered  to  be  equal  to  the  loss  of  one-half  of 
such  thumb  or  finger,  and  compensation  shall  be  one-half  of  the 
amounts  above  specified. 


196  APPENDIX    (Compensation) 

(7.)  The  loss  of  more  than  one  phalange  shall  be  considered  as 
the  loss  of  the  entire  finger  or  thumb ;  provided,  however,  that 
in  no  case  shall  the  amount  received  for  more  than  one  finger 
exceed  the  amount  provided  in  this  schedule  for  the  loss  of  a 
hand. 

(8.)  For  the  loss  of  a  great  toe,  sixty  per  cent  of  daily  wages 
during  twenty-five  weeks. 

(9.)  For  the  loss  of  one  of  the  toes  other  than  the  great  toe, 
sixty  per  cent  of  daily  wages  during  fifteen  wrecks. 

(10.)  For  the  loss  of  the  first  phalange  of  am^  toe  shall  be 
considered  to  be  equal  to  the  loss  of  one-half  of  such  toe,  and  the 
compensation  shall  be  one-half  of  the  amount  above  specified. 

(11.)  The  loss  of  more  than  one  phalange  shall  be  con- 
sidered as  the  loss  of  the  entire  toe. 

(12.)  For  the  loss  of  a  hand,  sixty  per  cent  of  daily  wages 
during  one  hundred  fift}"  weeks. 

(13.)  The  loss  of  two-thirds  of  that  part  of  an  arm  between  the 
shoulder  joint  and  the  elbow  joint  shall  constitute  the  loss  of 
an  arm,  and  the  compensation  therefor  shall  be  sixty  (60)  per 
cent  of  the  average  weekly  wages  during  two  hundred  twent}^- 
five  (225)  weeks. 

(14.)  For  the  loss  of  a  foot,  sixty  per  cent  of  daily  wages  dur- 
ing one  hundred  twentj^-five  weeks. 

(15.)  The  loss  of  two-thirds  of  that  part  of  a  leg  between 
the  hip  joint  and  the  knee  joint  shall  constitute  the  loss  of  a  leg, 
and  the  compensation  therefor  shall  be  sixty  (60)  per  cent  of 
the  average  weekl}^  wages  during  two  hundred  (200)  weeks. 

(16.)  For  the  loss  of  an  eye,  sixty  per  cent  of  daily  wages 
during  one  hundred  weeks. 

(a)  For  the  loss  of  a  second  or  last  eye,  the  other  eye  having 
been  lost  prior  to  the  injury  resulting  in  the  loss  of  the  second 
eye,  sixty  (60)  per  cent  of  the  average  weekly  wages  during  two 
hundred  (200)  weeks. 

(17.)  For  the  loss  of  hearing  in  one  ear,  sixty  (60)  per  cent  of 
dail}^  wages  during  fifty  (50)  weeks,  and  for  the  loss  of  hearing 
in  both  ears,  sixty  (60)  per  cent  of  the  daily  wages  during  one 
hundred  fifty  (150)  weeks. 

(18.)  The  loss  of  both  arms,  or  both  hands,  or  both  feet,  or 
both  legs,  or  both  eyes,  or  of  anj^  two  thereof,  caused  by  a  single 
accident  shall  constitute  total  and  permanent  disability,  to  be 
compensated  according  to  the  provisions  of  section  twenty-four 
hundred  seventv-seven-m-9  (1)  (2477-m-9-i),  supplement  to  the 
code,  1913. 


APPENDIX    (Compensation)  197 

(19.)  In  all  other  cases  in  this,  clause  (j),  the  compensation 
shall  bear  such  relation  to  the  amount  stated  in  the  above 
schedule  as  the  disability  bears  to  those  produced  by  the  injuries 
named  in  the  schedule.  Should  the  employe  and  employer  be 
unable  to  agree  upon  the  amount  of  compensation  to  be  paid  in 
cases  not  specifically  covered  by  the  schedule,  the  amount  of 
compensation  shall  be  settled  according  to  provisions  of  this  act 
as  in  other  cases  of  disagreement. 

(20.)  The  amounts  specified  in  this,  clause  (j)  and  subdivisions 
thereof,  shall  be  subject  to  the  same  limitations  as  to  maximum 
and  minimum  weekly  payments  as  are  stated  in  clause  (h), 
section  ten   (nine)   hereof. 

Sec.  2477-mlO.  Death — payment  of  unpaid  balance.  "Where 
an  employe  is  entitled  to  compensation  under  this  act  for  an 
injury  received  and  death  ensues  from  any  cause  not  resulting 
from  the  injury  for  which  he  was  entitled  to  the  compensation, 
payments  of  the  unpaid  balance  for  such  injury  shall  cease  and  all 
liability  therefor  shall  terminate. 

Sec.  2477-mll.  Examination  of  injured  employe — suspension 
of  compensation.  After  an  injury,  the  employe,  if  so  requested 
by  his  employer,  shall  submit  himself  for  examination  at  some 
reasonable  time  and  place  within  the  state  and  as  often  as  may 
be  reasonably  requested,  to  a  physician  or  physicians  authorized 
to  practice  under  the  laws  of  this  state,  without  cost  to  the 
employe;  but  if  the  employe  request,  he  shall,  at  his  own  cost,  be 
entitled  to  have  a  physician  or  physicians  of  his  own  selection 
present  to  participate  in  such  examination.  The  refusal  of  the 
employe  to  submit  to  such  examination  shall  deprive  him  of  the 
risrht  to  compensation  during  the  continuance  of  such  refusal. 
When  a  right  to  compensation  is  thus  suspended  no  compensation 
shall  be  payable  in  respect  to  the  period  of  suspension. 

Sec.  2477-ml2.  Contributions  from  employes — no  reduction 
of  employer's  responsibility.  The  compensation  herein  provided 
sliall  be  the  measure  of  the  responsibility  which  the  employer 
has  assumed  for  injuries  or  death  that  may  occur  to  employes  in 
his  employment,  subject  to  the  provisions  of  this  act,  and  it  shall 
not  be  in  any  wise  reduced  by  contribution  from  employes. 

Sec.  2477-ml3.  Trustees  for  minors  and  those  mentally  incapaci- 
tated— reports^  When;  an  in ju*red  minor,  em^)loye  or  .a  minor  de- 
pendent or  one  physically  or  mentally  incapacitated  from  earning 
is  entitled  to  compensation  under  this  act,  payment  shall  be  made 
to  a  trustee  appointed  by  the  judge  of  the  district  court  for  eacli 
county  in  the  respective  judicial  districts,  and  the  money  coming 
into  the  hands  of  the  said  trustees  shall  be  expended  for  the  use 
and  benefit  of  the  person  entitled  thereto  under  the  direction 
and  orders  of  the  judge  during  term  time  or  in  vacation.     The 


198  APPENDIX    (Compensation) 


trustee  shall  make  animal  reports  to  the  court  of  all  money  or 
property  received  and  expended  for  each  person,  and  for  services 
rendered  as  trustee  shall  be  paid  such  compensation  by  the 
county  as  the  court  may  direct  by  written  order  directed  to  the 
auditor  of  the  county,  who  shall  issue  a  warrant  therefor  upon 
the  treasurer  of  the  county  in  which  the  appointment  is  made. 
If  the  judge  making  the  appointment  deems  it  advisable,  a 
trustee  may  be  appointed  to  serve  for  more  than  one  county 
in  the  district  and  the  expenses  shall  be  paid  ratably  by  each 
county  according  to  the  amount  of  work  performed  in  each 
county.  The  trustee  shall  qualify  and  give  bond  in  such  amount 
as  the  judge  may  direct,  which  may  be  increased  or  diminished 
from  time  to  time  as  the  court  may  deem  best.  In  case  a  deceased 
employe  for  whose  injury  or  death  compensation  is  payable 
leaves  surviving  him  an  alien  dependent  or  dependents  residing 
outside  the  United  States,  the  consul-general,  consul,  vice-consul 
or  consular  agent  of  the  nation  of  which  the  said  dependent  or 
dependents  are  citizens  shall  be  regarded  as  the  exclusive  repre- 
sentative of  such  dependent  or  dependents.  Such  consular  officer, 
or  his  duly  appointed  representative  residing  in  the  state  of  Iowa, 
shall  have  the  exclusive  right  in  behalf  of  such  nonresident 
dependent  or  dependents  to  present,  prosecute,  litigate,  adjust  and 
settle  all  claims  for  compensation  provided  by  this  act,  and  to 
receive  for  distribution  to  such  dependent  or  dependents  all  com- 
pensation arising  -thereunder. 

Such  consular  officer  or  his  duly  appointed  representative  shall 
file  with  the  industrial  commissioner  a  copy  of  his  exequatur  or 
evidence  of  his  authority,  and  the  industrial  commissioner  shall 
notify  such  consular  officer  or  his  said  representative  of  the  death 
of  all  employes  leaving  alien  dependent  or  dependents  residing  in 
the  country  of  said  consular  officer,  so  far  as  the  same  shall  come 
to  his  knowledge ;  provided,  however,  that  nothing  herein  shall 
abridge  the  right  of  any  relative  of  such  decedent  who  may 
reside  in  the  state  of  Iowa  to  take  out  administration  upon  the 
estate  of  such  decedent,  and  as  such  receive  the  funds  due  said 
estate;  and  provided  further  that  before  said  consular  agent  or 
his  representative  shall  have  the  right  to  receive  funds  due  tlie 
estate  of  said  decedent  he  shall  regularly  take  out  administration 
in  the  county  where  decedent  last  resided,  and  give  bond  as 
administrator  for  the  protection  of  such  funds  as  provided  hy 
law. 

Sec.  2477-ml4.  Commutation  of  future  payments — discretion 
of  court.  In  any  ease  where  the  period  of  compensation  can  be 
determined  definitely  either  party  may,  upon  due  notice  to  the 
other,  apply  to  any  judge  of  the  district  court  for  the  county  in 
which  the  accident  occurred  for  an  order  commuting  future 
payments  to  a  lump  sum;  provided,  however,  that  no  judg'e  of 


APPENDIX   ( Compensation )  199 

the  district  court  shall  consider  any  such  application  until  there 
is  endorsed  thereon  by  the  Iowa  industrial  commissioner  his 
approval  of  such  commutation,  and  no  order  shall  be  issued 
by  such  judge  contrary  to  the  endorsement  of  said  industrial 
commissioner.  And  such  judge  may  make  such  an  order  when  it 
shall  be  shown  to  his  satisfaction  that  the  payment  of  a  lump 
sum  in  lieu  of  future  monthly  or  weekly  payments,  as  the  case 
may  be,  will  be  for  the  best  interest  of  the  person  or  persons 
receiving  or  dependent  upon  said  compensation,  or  that  the 
continuance  of  periodical  payments  will,  as  compared  with  lump 
sum  payments,  entail  undue  expense  or  undue  hardship  upon  the 
employer  liable  therefor.  Where  the  commutation  is  ordered, 
the  court  shall  fix  the  lump  sum  to  be  paid  at  an  amount  which 
will  equal  the  total  sum  of  the  probable  future  payments  capi. 
talized  at  their  present  value  and  upon  the  basis  of  interest, 
calculated  at  five  per  cent  per  annum.  Upon  the  payment  of 
such  amount  the  employer  shall  be  discharged  from  all  further 
liability  on  account  of  such  injury  or  death,  for  which  said  com- 
pensation was  being  paid,  and  be  entitled  to  a  duly  executed 
release,  upon  filing  which  the  liability  of  such  employer  under 
any  agreement,  award,  finding  or  judgment  shall  be  discharged 
of  record. 

Sec.  2477-ml5  Schedule  of  computation.  The  basis  for  com- 
puting compensation  provided  for  in  this  act  shall  be  as 
follows : 

(a)  The  compensation  shall  be  computed  on  tlie  basis  of  the 
annual  earnings  which  the  injured  person  received  as  salary, 
wages  or  earnings  in  the  employment  of  the  same  employer 
during  the  year  next  preceding  the  injury. 

(b)  Employment  b}^  the  same  employer  shall  be  taken  to 
mean  employment  by  the  same  employer  in  the  grade  in  which 
the  emploj^e  was  employed  at  the  time  of  the  accident,  uninter- 
rupted by  absence  from  work  due  to  illness  or  any  otlier  unavoid- 
able cause. 

(c)  The  annual  earnings,  if  not  otherwise  determinable,  shall 
be  regarded  as  three  hundred  times  the  average  daily  earnings 
in  such  computation. 

(d)  If  the  injured  person  has  not  been  engaged  in  the  employ- 
ment for  a  full  year  immediately  preceding  the  accident,  the 
compensation  shall  be  computed  according  to  the  annual  earn- 
ings which  persons  of  the  same  class  in  the  same  or  in  neighbor- 
ing employments  of  the  same  kind  have  earned  during  such 
period.  And  if  this  basis  of  computation  is  impossible,  or  should 
appear  to  be  unreasonable,  three  hundred  times  the  amount  which 
the  injured  person  earned  on  an  average  of  those  days  when  he 
was  working  during  the  year  next  preceding  the  accident,  shall 
be  used  as  a  basis  for  the  computation. 


200  APPENDIX   (Compensation) 

(e)  In  case  of  injured  employes  who  earn  either  no  wages  or 
less  than  three  hundred  times  the  usual  daily  wage  or  earnings 
of  the  adult  da}'  laborer  in  the  same  line  of  industry  of  that 
locality,  the  yearly  wage  shall  be  reckoned  as  three  hundred 
times  the  average  dail}^  local  wages  of  the  average  wage  earner 
in  that  particular  kind  or  class  of  work ;  or  if  information  of  that 
class  is  not  obtainable,  then  of  the  class  or  kindred  or  similarity 
in  the  same  general  employment  in  the  same  neighborhood. 

(f )  As  to  employes  employed  in  a  business  or  enterprise  which 
customarily  shuts  down  and  ceases  operation  during  a  season  of 
each  year,  the  number  of  working  days  which  it  is  the  custom  of 
such  business  or  enterprise  to  operate  each  year  shall  be  used 
instead  of  three  hundred  as  a  basis  for  computing  the  annual 
earnings,  provided  the  minimum  number  of  days  which  shall  be 
used  as  a  basis  for  the  year's  work  shall  not  be  less  than  two 
hundred. 

(g)  Earnings,  for  the  purpose  of  this  section,  shall  be  based 
on  the  earnings  for  the  number  of  hours  commonly  regarded  as 
a  day's  work  for  that  employment,  and  shall  exclude  overtime 
earnings.  The  earnings  shall  not  include  any  sum  which  the 
employer  has  been  accustomed  to  pay  the  employe  to  cover  any 
special  expense  entailed  on  him  by  the  nature  of  the  employment. 

"Earnings"  received  by  an  injured  employe  do  not  include  money  paid 
by  a  miner  for  powder  and  blacksmith  work,  which  must  be  deducted 
from  the  acual  total  amount  received  for  the  year. 

Richards  vs.   Central   Iowa  Fuel   Company,   166   N.   W.   1059. 

(h)  In  computing  the  compensation  to  be  paid  to  any  employe 
who,  before  the  accident  for  which  he  claims  com^pensation,  was 
disabled  and  drawing  compensation  under  tlie  terms  of  this  act, 
the  compensation  for  each  subsequent  injury  shall  be  apportioned 
according  to  the  proportion  of  incapacity  and  disability  caused 
by  the  respective  injuries  which  he  may  have  suffered. 

Sec.  2477-ml6.  Terms  defined.  In  this  act  unless  the  context 
otherwise  requires : 

(a)  '*Emplo3^er"  includes  and  applies  to  any  person,  firm, 
association  or  corporation,  and  includes  state,  counties,  municipal 
corporations,  cities  under  special  charter  and  under  commission 
form  of  government,  and  shall  include  school  districts  and  the 
legal  representatives  of  a  deceased  employer.  Whenever  neces- 
sary^ to  give  effect  to  section  seven  of  this  act,  it  includes  a  prin- 
cipal or  intermediate  contractor. 

(b)  ''AVorkman"  is  used  synonymously  with  "employe,"  and 
means  any  person  who  has  entered  into  the  emploj^ment  of,  or 
works  under  contract  of  service,  express  or  implied,  or  apprentice- 
ship for  an  employer,  except  a  person  whose  employment  is  purely 


APPENDIX    (Compensation)  201 

casual  or  not  for  the  purpose  of  the  employer's  trade  or  business 
or  those  engaged  in  clerical  work  only,  but  clerical  work  shall 
not  include  one  who  may  be  subjected  to  the  lia/ards  ol;  tlie 
business,  or  one  holding  an  official  position  or  standing  in  a  repre- 
sentative capacity  of  the  employer,  or  an  official  elected  or  ap- 
pointed by  the  state,  county,  school  district,  municipal  corpora- 
tion, cities  under  special  charter  and  commission  form  of  govern- 
ment, provided  that  one  who  sustains  the  relation  of  contractor 
with  any  person,  firm,  association,  corporation  or  the  state,  count}', 
school  district,  municipal  corporation,  cities  under  special  charter 
or  commission  form  of  government  shall  not  be  considered  an 
employe  thereof. 

Workmen's  compensation  must  be  presumed  to  have  used  the  word 
"contractor"  in  the  sense  it  is  commonly  employed,  and  in  which  it  has 
been  defined  by  the  courts. 

Pace  vs.  Appanoose  county — 168  N.  W.  916. 

Whether  one  is  an  employe  or  an  independent  contractor  depends  on 
whether  he  represents  the  master  as  to  the  result  of  the  work  or  only 
as  to  the  means,  and,  if  representing  the  master  only  as  to  result,  and 
selecting  the   means,   he   is   an   independent  contractor. 

Pace  vs.  Appanoose  county — 168  N.  W,  916. 

The  manner  of  payment,  though  often  significant,  is  not  necessarily 
controlling  as  to  whether  one  is  an  employe  or  an  independent  contractor. 

Pace  vs.  Appanoose  county — 168  N.  W.  916. 

If  a  contract  gives  the  employer  no  control  over  the  details  of  the  work, 
but  leaves  that  to  the  party  undertaking  the  work,  such  party  is  an  inde- 
pendent contractor. 

Pace  vs.  Appanoose  county — 168  N.  W.  916. 

The  test  of  a  contractor  is  that  he  render  services  in  course  of  inde- 
pendent occupation  following  employer's  desires  in  results  but  not  in 
means;  but  the  employer's  authoritative  control  is  to  be,  distinguished 
from  mere  suggestions  as  to  detail,  or  necessary  co-operation  where  work 
is  part  of  larger  undertaking. 

Pace  vs.  Appanoose  county — 168  N.  W.  916. 

One  employed  to  remove  62  trees  preparatory  to  grading  a  street,  to 
be  paid  in  a  lump  sum,  he  furnishing  his  own  tools,  controlling  his  own 
time,  and  being  responsible  for  nothing  except  the  accomplishment  of  the 
removal  of  trees,  was  a  contractor  within  the  meaning  of  the  act. 

Storm  vs.  Thompson— 170  N.  W.   403. 

The  term  "workman"  shall  include  the  singular  and  plural 
of  both  sexes.  Any  reference  to  a  workman  who  has  been 
injured  shall,  wliere  the  workman  is  dead,  include  a  reference  to 
his  dependents  as  herein  defined,  legal  representatives,  or  where 
the  workman  is  a  minor  or  incompetent  to  his  guardian  or  next 
friend. 

(c)  The  following  shall  be  conclusively  presumed  to  be 
wholly  dependent  upon  a  deceased  employe. 

(1.)  The  surviving  spouse,  unless  it  be  shown  that  the  survivor 
wilfully  deserted  deceased  without  fault  upon  the  part  of  the 
deceased;  and  if  it  be  shown  that  the  survivor  deserted  deceased 


202  APPENDIX   (Compensation) 

without  fault  upon  the  part  of  deceased,  the  survivor  shall  not 
be  regarded  as  a  dependent  in  any  degree.  No  surviving  spouse 
.shall  be  entitled  to  the  benefits  of  this  act  unless  she  shall  have 
been  married  to  the  deceased  at  the  time  of  the  injury,  and  should 
the  deceased  employe  leave  no  dependent  children,  and  should 
the  surviving  spouse  remarr}^,  then  all  compensation  payable  to 
her  shall  terminate  on  the  date  of  such  remarriage. 

(2.)  A  child  or  children  under  sixteen  years  of  age  (and  over 
said  age  if  physically  or  mentally  incapacitated  from  earning) 
whether  actually  dependent  for  support  or  not  upon  the  parent 
at  the  time  of  his  or  her  death. 

(3.)  A  parent  of  a  minor  entitled  to  the  earnings  of  the  em- 
ploye at  the  time  when  the  injury  occurred,  subject  to  provisions 
of  subdivision  (f),  section  ten  (nine)  hereof. 

(4.)  If  the  deceased  emploj^e  leaves  dependent  surviving 
spouse,  the  full  compensation  shall  be  paid  to  such  spouse ;  but  if 
the  dependent  surviving  spouse  dies  before  payment  is  made  in  full, 
the  balance  remaining  shall  be  paid  to  the  person  or  persons 
wholly  dependent,  if  any,  share  and  share  alike.  If  there  be  no 
person  or  persons  whollj^  dependent,  then  payment  shall  be  made 
to  partial  dependents. 

(5.)  In  all  other  cases,  questions  of  dependency  in  whole  or  in 
part  shall  be  determined  in  accordance  with  the  fact  as  the  fact 
may  be  at  the  time  of  the  injury ;  and  in  such  other  cases  if  there 
is  more  than  one  person  wholly  dependent,  the  death  benefit  shall 
be  equally  divided  among  them,  and  persons  partially  dependent, 
if  any,  shall  receive  no  part  thereof.  If  there  is  no  one  wholly 
dependent  and  more  than  one  person  partially  dependent,  the 
death  benefit  shall  be  divided  among  them  according  to  the 
relative  extent  of  their  dependency.  Provided,  however,  that 
when  a  lump  sum  is  paid  as  contemplated  by  this  act,  the  court  or 
commissioner,  in  making  distribution  thereof,  shall  take  into 
consideration  the  contingent  rights  of  partial  beneficiaries  or 
the  rights  of  those  who  may  become  such  after  a  wholly  depend- 
ent child  or  children  become  sixteen  years  of  age. 

(6.)     Step-parents  shall  be  regarded  in  this  act  as  parents. 

(7.)  Adopted  child  or  children  or  stepchild  or  children  shall 
be  regarded  in  this  act  the  same  as  if  issue  of  the  body. 

(d)  ''Injury"  or  "personal  injury"  includes  death  resulting 
from  injury. 

(e)  The  words  "personal  injury  arising  out  of  and  in  the 
course  of  such  employment"  shall  include  injuries  to  employes 
whose  services  are  being  performed  on,  in  or  about  the  premises 
which  are  occupied,  used  or  controlled  by  the  employer,  and  also 


APPENDIX    (Compensation)  208 


injuries  to  those  who  are  engaged  elsewhere  in  phiees  where 
their  employer's  business  requires  their  presence  and  subjects 
them  to  dangers  incident  to  the  business. 

Employment  is  not  responsible  for  lightning  injuries  unless  it  increases 
the  hazard  from   lightning. 

Injury  by  lightning  after  working  hours  and  while  employe  was  sitting 
in  boarding  tent  at  site  of  work,  furnished  by  employer,  did  not  arise 
out  of  employment. 

Griffith  vs.  Cole— 165  N.  W.  577. 

If  an  employe  has  reached  his  employer's  premises  on  his  way  to  work 
or  is  still  on  the  premises  on  his  Avay  home  from  work,  when  an  accident 
occurs,  it  is  an  accident  arising  out  of  the  employment. 

Pace  vs.  Appanoose  county — 168  N.  W.  916. 

Act  held  to  have  extra  territorial  effect. 

Pierce  vs.  Bekins  Van  and   Storage  Co. — 172  N.   W.   191. 

(f)  The  words  "injury"  and  "personal  injury"  shall  not 
include  injury  caused  by  tlie  wilful  act  of  a  third  person  directed 
against  an  employe  for  reasons  personal  to  such  employe  or 
because  of  his  employment. 

(g)  They  shall  not  include  a  disease  except  as  it  shall  result 
from  the  injury. 

(h)  The  word  "court"  whenever  used  in  this  act,  unless 
the  context  shows  otherwise,  shall  be  taken  to  mean  the  district 
court. 

Sec.  2477-ml7.  Insurance  against  compensation  prohibited — 
penalty,  (a)  Any  contract  of  employment,  relief  benefit  or 
insurance  or  other  device  whereby  the  employe  is  required  to 
pay  any  premium  or  premiums  for  insurance  against  the  com- 
pensation provided  for  in  this  act  shall  be  null  and  void ;  and  any 
employer  Avithholding  from  the  wages  of  any  employe  any  amount 
for  the  purpose  of  paying  any  such  premium  shall  be  guilty 
of  a  misdemeanor  and  punishable  by  a  fine  not  less  than  ten 
dollars  nor  more  than  fifty  dollars  for  each  offense,  in  the  discre- 
tion of  the  court. 

No  employe  or  beneficiary  shall  have  power  to  waive  any  of 
the  provisions  of  this  act  in  regard  to  the  amount  of  compensation 
which  may  be  payable  to  such  employe  or  beneficiary  hereunder 
to  whom  the  act  applies. 

Sec.  2477-ml8.  Contract  respecting  claim  for  injury  deemed 
fraudulent.  Any  contract  or  agreement  made  by  any  employer 
or  his  agent  or  attorney  with  any  employe  or  any  other  benefi- 
ciary of  any  claim  under  the  provisions  of  this  act  within  twelve 
days  after  tlie  injury  siiall  be  presumed  to  be  frauduh'iit. 

Sec.  2477-m20.  Attorney's  lien — subject  to  approval.  No  claim 
of  an  attorney  at  law  for  services  in  securing  a  recovery  under 


204  APPENDIX    (Compensation) 

this  act  shall  be  an  enforceable  lien  thereon  unless  the  amount 
of  the  same  be  approved  in  writing  by  a  judge  of  a  court  of 
record  or  the  Iowa  industrial  commissioner,  which  approval  may 
be  made  in  term  time  or  vacation. 

Sec.  2477-in21.  Applicable  to  intrastate  and  interstate  com- 
merce. The  provisions  of  this  act  shall  apply  to  employers  and 
employes  as  defined  in  this  act  engaged  in  intrastate  commerce 
and  also  those  engaged  in  interstate  or  foreign  commerce  for 
wliom  a  rule  or  method  of  compensation  has  been  or  may  be 
established  by  the  congress  of  the  United  States,  only  to  the 
extent  that  their  mutual  connection  with  intrastate  work  or 
foreign  commerce  shall  be  clearly  separable  and  distinguishable 
from  interstate  or  foreign  commerce ;  provided,  that  any  such 
employer  and  workman  of  such  employer  working  only  in  this 
state  may,  subject  to  the  approval  of  the  Iowa  indifstrial  com- 
missioner, and  so  far  as  not  forbidden  by  any  act  of  congress 
or  permitted,  voluntarily  by  written  agreement,  accept  and 
become  bound  by  the  proA^sions  of  this  act  in  like  manner  and 
with  the  same  force  and  effect  in  every  respect  as  b}^  this  act 
provided  for  other  employers  and  employes. 

The  mere  allegation  of  the  employer  that  the  servant  was  engaged  in 
interstate  commerce,  and  hence  recovery  could  be  had  only  under  the 
federal  act,  does  not  deprive  the  industrial  commissioner  or  the  board 
of  arbitration  of  jurisdiction  since  that  is  a  mere  question  of  fact  for 
their  decision. 

Des  Moines  Union  vs.  Punk— 164  N.  W.  648. 


PART  II. 


Sec.  2477-m22.  Iowa  industrial  commissioner — appointment — 
term.  There  is  hereby  created  the  office  of  Iowa  industrial  com- 
missioner, to  be  appointed  by  the  governor,  by  and  with  the 
consent  of  the  senate.  The  term  of  office  of  the  commissioner 
shall  be  six  years.  An  appointment  may  be  made  to  fill  a  vacancy 
or  otherwise  when  the  senate  is  not  in  session,  but  shall  be  acted 
upon  at  the  next  session  thereof. 

The  Iowa  industrial  commissioner  shall  appoint  a  deputy,  for 
whose  acts  he  shall  be  held  responsible,  who  shall  hold  office 
during  the  pleasure  of  said  industrial  commissioner.  Such 
appointment  shall  be  made  in  writing,  and  must  be  approved  by 
the  executive  council  of  the  state  of  Iowa.  The  deputy,  in  the 
absence  or  disabilitj^  of  the  Iowa  industrial  commissioner,  shall 
have  all  the  poA\^ers  and  perform  all  of  the  duties  of  the  indus- 
trial commissioner  pertaining  to  his  office,  and  shall  receive  an 
annual  salary  of  twenty-four  hundred  dollars,  payable  in  equal 
monthly  installments,  out  of  the  state  treasury  and  in  the  same 
manner  as  are  the  salaries  of  other  state  officials. 


APPENDIX    (Compensation)  205 

Sec.  2477-m23.  Salary — expenses — office — seal — assistants — 
accounts — political  activity — annual  appropriation.  The  salary 
and  actual  necessary  expenses  of  the  commissioner  shall  be 
paid  by  the  state,  and  he  shall  be  provided  with  adequate  and 
necessary  office  rooms,  furniture,  equipment,  supplies  and  other 
necessaries  in  the  transaction  of  the  business.  The  annual  salary 
of  the  commissioner  shall  be  thirty-three  hundred  dollars.  The 
commissioner,  by  and  with  the  consent  of  the  executive  council, 
may  fix  the  salary  and  appoint  a  secretary  and  other  assistants 
and  clerical  help  as  may  be  required  and  needed,  provided  that 
the  salary  of  the  secretary  shall  not  exceed  eighteen  hundred 
dollars  per  annum.  The  salary  and  actual  personal  expense  account 
of  the  commissioner  shall  be  itemized  and  sworn  to  and  filed  as 
other  current  bills  as  provided  by  statute,  and  warrant  therefor 
shall  be  issued  by  the  auditor  upon  the  treasury  of  the  state  for 
the  payment  thereof  at  the  end  of  each  calendar  month ;  provided, 
however,  that  the  expense  account  may  be  audited,  allowed  and 
paid  at  the  end  of  each  week.  The  commissioner  shall  provide 
himself  with  a  seal,  which  shall  be  used  to  authenticate  his 
orders,  decisions  and  other  proceedino-s  deemed  necessary,  upon 
which  shall  be  inscribed  the  words  ''Iowa  Industrial  Commis- 
sioner's Seal"  and  the  date  of  organization.  All  other  accounts 
made  by,  through  or  under  the  commissioner  for  salaries  (and) 
expenditures,  unless  otherwise  by  this  act  provided,  shall  be  item- 
ized and  sworn  to  by  the  parties  entitled  thereto,  audited  by  the 
commissioner,  attested  by  the  secretary,  filed  as  other  bills  are 
required  by  statute,  and  a  Avarrant  shall  issue  therefor  by  the 
auditor  of  state  upon  the  treasurer,  who  shall  pay  the  same  out 
of  the  funds  appropriated  for  the  use  of  the  commissioner  as  by 
this  act  provided.  The  salaries  of  all  persons  under  the  commis- 
sioner shall  be  audited,  allowed  and  paid  at  the  end  of  each 
month,  and  expense  accounts  may  be  audited,  alloAved  and  paid  at 
the  end  of  each  Aveek.  The  commissioner  shall  have  the  power  to 
remove  the  secretary  or  any  other  person  appointed  to  an  office 
by  him  at  any  time  the  commissioner  may  see  fit. 

It  shall  be  unlawful  for  any  appointee  by  the  commissioner  to 
espouse  the  election  or  appointment  of  any  candidate  for  or  to 
any  political  office,  or  contribute  to  the  campaign  fund  of  any 
political  party,  or  to  the  campaign  fund  of  any  person  who  is  a 
candidate  for  election  or  appointment  to  any  political  office,  and 
any  person  performing  the  duties  as  an  appointee  under  the 
commissioner  violating  the  provisions  of  this  act  shall  be  sufficient 
cause  for  dismissal  and  removal  from  office. 

Before  entering  upon  his  duties  the  commissioner  shall  qualify 
by  taking  the  oath  of  his  office,  that  he  will  support  the  constitu- 
tion of  the  United  States  and  of  the  state  of  Iowa,  and  will 
faithfully  and  impartially,  without  fraud,  fear  or  favor,  dis- 
charge the  duties  of  his  office  incumbent  upon  him,  as  provided 

14 


206  APPENDIX    (Compensation) 

by  the  law  of  the  state  of  Iowa,  to  the  best  of  his  ability  and 
understanding. 

There  is  hereby  appropriated  out  of  any  money  not  otherwise 
appropriated  for  the  use  of  the  commissioner,  as  contemplated 
Avit]iin  the  terms  of  this  act  or  acts  amendatory  thereof,  or  other 
statutes  relating  to  the  commissioner,  his  duties  and  responsi- 
bilities empowered  by  law,  the  sum  of  twenty  thousand  dollars 
annually,  and  in  addition  thereto  the  executive  council  shall  pro- 
vide and  furnish  the  commissioner  with  such  printing  as  may 
be  necessary  in  the  transaction  of  the  business  within  the  con- 
templation of  the  law. 

Sec.  2477-m24.  Powers — rules — witnesses — reports.  The  com- 
missioner may  make  rules  and  regulations  not  inconsistent  with 
this  act  for  carrying  out  the  provisions  of  the  act.  The  employer 
shall  furnish  upon  request  of  an  injured  employe  or  dependent 
or  any  legal  representative  acting  for  such  person,  a  statement 
of  the  earnings,  wages,  or  salary  and  other  matters  relating  to 
sucli  earnings,  wages,  or  salary  during  the  year  or  part  of  the 
year  that  such  employe  was  in  the  employment  of  such  employer 
for  the  3^ear  preceding  the  injury.  Provided,  however,  that  not 
more  than  one  report  shall  be  required  for  each  on  account  of 
any  one  injury.  Process  and  procedure  under  this  act  shall  be 
as  summar}^  as  reasonably  may  be.  While  sitting  as  an  arbitra- 
tion committee,  or  when  conducting  a  hearing  upon  review,  or 
in  the  making  of  any  investigation  or  inquiry,  neither  the  com- 
missioner nor  the  arbitration  committee  shall  be  bound  by  com- 
mon law  or  statutory  rules  of  evidence,  or  by  technical  or 
formal  rules  of  procedure,  but  may  hold  such  arbitra- 
tions or  conduct  such  hearings  and  make  such  investigations 
and  inquiries  in  the  manner  best  suited  to  ascertain  the  substan- 
tial rights  of  the  parties.  The  commissioner  shall  have  the  power 
to  subpoena  witnesses,  administer  oaths  and  to  examine  such 
books  and  records  of  the  parties  to  a  proceeding  or  investigation 
as  relate  to  questions  in  dispute  or  under  investigation.  The  fees 
for  attending  as  a  witness  before  the  industrial  commissioner 
shall  be  one  dollar  and  tifty  cents  per  diem ;  for  attending  before 
an  arbitration  committee,  one  dollar  per  diem;  in  both  cases  five 
cents  per  mile  for  traveling  to  and  from  the  place  of  hearing. 
The  district  court  is  hereby  empowered  to  enforce  by  proper  pro- 
ceedings the  provisions  of  this  section  relating  to  the  attendance 
and  testimony  of  witnesses  and  the  examination  of  books  and 
records.  The  deposition  of  any  witness  may  be  taken  and  used 
as  evidence  in  any  hearing  pending  before  a  board  of  arbitration 
in  workmen's  compensation  proceeding  in  connection  herewith. 
That  such  deposition  shall  be  taken  in  the  same  manner  as  pro- 
vided for  the  taking  of  depositions  in  the  district  court,  and  when 
so  taken  shall  be  admissible  in  evidence  in  such  hearings  in  the 


APPENDIX    (Compensation)  207 

same  manner  subject  to  the  same  rules  governing  the  admission 
of  evidence  in  the  district  court.  Application  for  permission  to 
take  depositions  in  such  case  shall  be  filed  in  the  district  court 
of  the  county  wherein  the  case  for  arbitration  shall  be  heard. 
The  commissioner  shall  make  biennial  reports  to  the  governor 
who  shall  transmit  the  same  to  the  general  assembly,  in  which, 
among  other  things,  the  commissioner  shall  recommend  such 
changes  in  the  law  covered  by  this  act  as  he  may  deem  necessary. 

Sec.  2477-m25.  Compensation  agreements — approval.  If  the 
emploj'Cr  and  the  employe  reach  an  agreement  in  regard  to  the 
compensation  under  this  act,  a  memorandum  thereof  shall  be 
filed  with  the  Iowa  industrial  commissioner  by  the  employer  or 
employe,  and  unless  the  commissioner  shall,  within  twenty  days, 
notify  the  employer  and  employe  of  his  disapproval  of  the  agree- 
ment by  registered  letter  sent  to  their  addresses  as  given  on  the 
memorandum  filed,  the  agreement  shall  stand  as  approved  and 
be  enforceable  for  all  purposes  under  the  provisions  of  this  act. 
In  case  the  injured  employe  is  a  minor,  either  he  or  the  trustee 
provided  for  in  section  twenty-four  hundred  seventy-seven-m-18 
(2477-m-13),  supplement  to  the  code,  1913,  may  execute  the  mem- 
orandum of  agreement  provided  for  herein,  and  may  give  a 
valid  and  binding  release  for  the  compensation  paid  on  his  ac- 
count under  the  terms  of  this  act.  Such  agreement  shall  be  ap- 
proved by  said  commissioner  only  when  the  terms  conform  to  the 
provisons  of  this  act. 

Employer's  ignorance  of  the  law  is  not  such  mistake  as  will  authorize 
the  setting  aside  of  a  partly  performed  settlement  made  under  the  com- 
pensation act   between   employer  and   employes. 

Bach  vs.  Inter  Urban  Ry  Co.— 171  N.  W.  134. 

Sec.  2477-m26.  Committee  of  arbitration.  If  the  employer  and 
the  injured  employe  or  representatives  or  dependents  fail  to  reach 
an  agreement  in  regard  to  compensation  under  this  act,  either 
party  may  notify  the  industrial  commissioner,  who  shall  there- 
upon call  for  the  formation  of  a  committee  of  arbitration.  The 
arl)itration  committee  shall  consist  of  three  persons,  one  of  whom 
shall  be  the  industrial  commissioner  who  shall  act  as  chairman. 
The  other  two  shall  be  named,  respectively,  by  the  two  parties. 
If  a  vacancy  occurs  it  shall  be  filled  by  the  party  whose  repre- 
sentative is  unable  to  act. 

The  applicant  for  Workmen's  compensation  has  the  burden  of  proving 
by  a  preponderance  of  the  evidence  that  the  injuries  arose  out  of  employ- 
ment. 

Griffith     vs.  Cole— 165  N.  W.  577. 

Plaintiff  seeking  compensation  under  workmen's  compensation  act  has 
burden  of  showing  that  injuries  arose  out  of  and  in  the  course  of  the 
employment  within  the  act. 

Rish  vs.  Iowa  Portland  Cement  Company — 170  X.  W.  532. 


208  APPENDIX    (Compensatior ) 

Sec.  2477-m27.  Oath  of  arbitrators.  Tlie  arbitrators  appointed 
by  the  parties  shall  be  sworn  by  the  chairman  to  take  the  follow- 
ing oath : 

I,    ,   do  solemnly  swear    (or   affirm) 

that  I  will  faithfully  perform  my  duties  as  arbitrator  and  will  not  be 
influenced  in  my  decision  by  any  feeling  of  friendship  or  partiality 
toward  either  party. 

( Signed; 

Sec.  2477-m28.  Appointment  of  arbitrators.  It  shall  be  the 
duty  of  the  industrial  commissioner,  upon  notification  that  the 
parties  have  failed  to  reach  an  agreement,  to  request  both  parties 
to  appoint  their  respective  representatives  on  the  committee  of 
arbitration.  The  commissioner  shall  act  as  chairman,  and  if 
either  party  does  not  appoint  its  member  on  this  committee 
within  seven  days  after  notification  as  above  provided,  or  after 
a  vacancy  has  occurred,  the  commissioner  shall  fill  the  vacancy 
and  notify  the  parties  to  that  effect. 

Sec.    2477-m29.      Powers    of    committee — hearings — decision. 

The  committee  of  arbitration  shall  make  such  inquiries  and  in- 
vestigations as  it  shall  deem  necessary.  The  hearings  of  the 
committee  shall  be  in  the  city,  town  or  place  where  the  injury 
occurred,  if  within  the  state.  If  the  injury  occurred  outside  this 
state  the  hearings  of  the  committee  shall  be  held  in  the  county 
seat  of  this  state  which  is  nearest  to  the  place  where  the  injury 
occurred  unless  the  interested  parties  and  the  Iowa  industrial 
commissioner  mutually  agree  by  written  stipulation  that  the 
same  ma}^  be  held  at  some  other  place.  The  decision  of  the  com- 
mittee, together  with  the  statement  of  evidence  submitted  be- 
fore it,  its  findings  of  fact,  rulings  of  laAV  and  any  other  matters 
pertinent  to  questions  arising  before  it  shall  be  filed  with  the 
industrial  commissioner.  Unless  a  claim  for  review  is  filed  by 
either  party  within  five  days  from  the  date  of  filing  the  decision 
with  said  commissioner,  such  decision  shall  be  enforceable  under 
the  provisions  of  this  chapter. 

Sec.    2477-m30.      Examination    by    physician — fee — evidence. 

The  industrial  commissioner  may  apoint  a  duly  qualified  impar- 
tial phjssician  to  examine  the  injured  employe  and  make  report. 
The  fee  for  this  service  shall  be  five  dollars,  to  be  paid  by  the 
industrial  commissioner,  together  with  traveling  expenses,  but  the 
commissioner  may  allow  additional  reasonable  amounts  in  ex- 
traordinary cases.  Any  physician  so  examining  any  injured  em- 
ploye shall  not  be  prohibited  from  testifying  before  the  Iowa 
industrial  commissioner  or  any  other  person,  commission  or  court, 
as  to  the  results  of  his  examination  or  the  condition  of  the  in- 
jured employe. 

Sec.  2477-m31.  Compensation  of  arbitrators — costs.  The  ar- 
bitrators named  by  or  for  the  parties  to  the  dispute  shall  each 


APPENDIX    (Compensation)  209 

receive  five  dollars  as  a  fee  for  his  services,  but  the  industrial 
commissioner  may  allow  additional  reasonable  amounts  in  ex- 
traordinary cases.  The  fees  shall  be  paid  by  the  employer  who 
may  deduct  an  amount  equal  to  one-half  of  the  sum  from  any 
compensation  found  due  the  employe.  And  all  other  costs  in- 
curred in  the  hearing  before  the  board  of  arbitration  shall  be 
taxed  to  the  losing  party,  or  an  equitable  apportioinnent  made 
thereof  by  the  committee  according  to  the  facts. 

Sec.  2477-m32.  Review — second  hearing.  If  a  claim  for  re- 
view is  filed,  the  industrial  commissioner  shall  hear  the  parties 
and  may  hear  evidence  in  regard  to  any  or  all  matters  pertinent 
thereto  and  may  revise  the  decision  of  the  committee  in  whole 
or  in  part,  or  may  refer  the  matter  back  to  the  committee  for 
further  findings  of  fact,  and  shall  file  its  decision  with  the  records 
of  the  proceedings  and  notify  the  parties  thereof.  No  party  shall 
as  a  matter  of  right  be  entitled  to  a  second  hearing  upon  any 
question  of  fact. 

Sec.  2477-m33.  Any  party  in  interest  may  present  a  certified 
copy  of  an  order  or  decision  of  the  commissioner,  or  an  award 
of  an  arbitration  committee  from  which  no  claim  for  review  has 
been  filed  within  the  time  allowed  therefor,  or  a  memorandum  of 
agreement  approved  by  the  commissioner,  and  all  papers  in  con- 
nection therewith,  to  the  district  court  of  the  county  in  which  the 
injury  occurred,  whereupon  said  court  shall  render  a  decree  in 
accordance  therewith  and  notify  the  parties.  Such  decree,  in 
the  absence  of  an  appeal  from  the  decision  of  the  industrial 
commissioner,  shall  have  the  same  effect  and  in  all  proceedings 
in  relation  thereto  shall  thereafter  be  the  same  as  though  ren- 
dered in  a  suit  duly  heard  and  determined  by  said  court.  Upon 
the  presentation  to  the  court  of  a  certified  copy  of  a  decision 
of  the  industrial  commissioner,  ending,  diminishing  or  increasing 
.a  weekly  payment  under  the  provisions  of  this  act,  the  court  shall 
revoke  or  modify  the  decree  to  conform  to  such  decision. 

Complaint  may  not  be  made  on  appeal  for  the  first  time  of  any  error 
in  computation  of  the  accumulated  unpaid  award  under  the  act,  which 
the   court   order^  paid. 

Fischer  vs.  Priebe  &  Company — 160  N.  W.  48. 

No  order  or  award  of  an  arbitration  committee  is  appealable 
direct  to  the  courts,  but  if  any  party  in  interest  is  aggrieved 
thereby,  he  may  within  five  (5)  days  from  the  date  thereof  aj^ply 
to  the  industrial  commissioner  for  a  review  of  the  same  by  sueli 
industrial  commissioner  in  the  manner  as  hereinbefore  provided. 
If  any  such  party  is  aggrieved  by  reason  of  an  order  or  decree 
of  the  Iowa  industrial  commissioner,  such  party  may  appeal 
therefrom  to  the  district  court  of  Iowa,  only  in  the  manner  and 
upon  the  grounds  following: 


210  APPENDIX    (CompensatioK) 


The  five  day  period  for  applying  for  a  review  of  an  arbitration  commit- 
tee's decision  by  tlie  commissioner  starts  to  run  on  the  date  that  the  com- 
mittee's award  is  filed  with  the  commissioner. 

Herbig  vs.  Walton  Auto  Company— 171  N.  W.  154. 

Within  thirty  (30)  days  from  the  date  of  such  order  or  decree 
of  the  industrial  commissioner,  the  party  aggrieved  may  file  an 
application  in  writing  with  the  Iowa  industrial  commissioner  ask- 
ing for  an  appeal  from  such  order  or  decree,  stating  generally  the 
grounds  upon  which  such  appeal  is  sought.  In  the  event  such 
application  is  filed  as  hereinbefore  provided,  the  industrial  com- 
missioner shall,  within  thirty  days  from  the  filing  of  same,  cause 
certified  copies  of  all  documents  and  papers  than  on  file  in  his 
office  in  the  matter,  and  a  transcript  of  all  testimony  taken 
therein,  to  be  transmitted  with  his  findings  and  order  or  decree 
to  the  clerk  of  the  district  court  of  Iowa  in  and  for  that  county 
wherein  the  injury  occurred.  The  application  for  such  appeal 
may  thereupon  be  brought  on  for  hearing  before  said  district 
court  upon  such  record  by  either  party  on  ten  (10)  days  written 
notice  to  the  other;  subject,  however,  to  the  provisions  of  law^ 
for  a  change  of  the  place  of  trial  or  the  calling  of  another  judge. 
The  findings  of  fact  made  by  the  industrial  commissioner  within 
his  powers  shall,  in  the  absence  of  fraud,  be  conclusive,  but  upon 
such  hearing  the  court  may  confirm  or  set  aside  such  order  or  de- 
cree of  the  industrial  commissioner,  if  he  finds : 

(1)  That  the  industrial  commissioner  acted  without  or  in 
excess  of  his  powers ;  or 

(2)  That  the  order  or  decree  was  procured  by  fraud;  or 

(3)  That  the  facts  found  by  the  industrial  commissioner  do 
not  support  the  order  or  decree. 

(4)  That  there  is  not  sufficient  competent  evidence  in  the 
record  to  warrant  the  industrial  commissioner  in  making  the" 
order  or  decree  complained  of. 

The  courts  may  not  interfere  with  the  findings  of  fact  made  by  the 
industrial  commissioner  when  they  are  supported  hf  evidence,  even 
though  it  may  be  thought  that  there  is  error. 

Pace  vs.  Appanoose  county — 168  N.  W.   916. 

The  district  court  may  confirm  or  set  aside  the  order  of  the  industrial 
commissioner  if  he  finds  the  commissioner  has  committed  error  in  one  or 
more  of  the  particulars  designated  by  act. 

Herbig  vs.  Walton  Auto  Company — 171  N.  W.  154. 

The  supreme  court  is  limited  in  its  review  upon  appeal  to  questions 
decided  by  the  lower  court. 

Herbig  vs.  Walton  Auto  Company — 171   N.  W.   154. 

No  order  or  decree  of  the  industrial  commissioner  shall  be  set 
aside  by  the  court  upon  other  than  the  grounds  just  stated. 


APP?:NDIX    (Compensation)  211 


Upon  the  setting  aside  of  any  sneli  order  or  deeree,  the  court 
may  recommit  the  controversy  to  the  industrial  commissioner  for 
further  hearing"  or  proceedings,  or  it  may  enter  the  proper  judg- 
ment upon  the  findings,  as  the  nature  of  the  case  may  demand. 
Such  decree  shall  have  the  same  effect  and  in  all  proceedings  in 
relation  thereto  shall  thereafter  be  the  same  as  though  rendered 
in  a  suit  duly  heard  and  determined  by  said  court.  An  abstract 
of  the  judgment  entered  by  the  trial  court  upon  the  appeal  from 
any  order  or  decree  shall  be  made  by  the  clerk  thereof  upon  the 
docket  entry  of  any  judgment  which  may  hereinbefore  have  been 
rendered  upon  it.  Such  order  or  decree  and  transcript  of  such 
abstract  may  thereupon  be  obtained  for  like  entry  upon  the 
dockets  of  the  courts  of  other  counties  within  the  state. 

Any  party  in  interest  who  is  aggrieved  by  a  judgment  entered 
by  the  district  court  upon  the  appeal  of  an  order  or  decree,  may 
appeal  therefrom  within  the  time  and  in  the  manner  provided 
for  in  appeal  from  the  orders,  judgments  and  decrees  of  the  dis- 
trict court  of  Iowa;  but  all  such  appeals  shall  be  placed  on  the 
calendar  of  the  supreme  court  and  brought  to  a  hearing  in  the 
same  manner  as  criminal  causes  on  such  calendar. 

No  fee  shall  be  charged  by  the  clerk  of  any  district  court  for 
the  performance  of  any  official  service  required  by  this  act,  ex- 
cept for  the  docketing  of  judgments  and  for  certified  copies  or 
transcripts  thereof.  In  proceeding  on  appeal  from  an  order  or 
decree,  costs  as  between  the  parties  shall  be  allowed  or  not,  in 
the  discretion  of  the  court. 

Sec.  2477-m34.  Review  of  Payment — notice,  (a)  Any  pay- 
ment required  to  be  made  under  this  act,  which  has  not  been  com- 
muted, may  be  reviewed  by  the  industrial  commissioner  at  the 
request  of  the  employer  or  of  the  employe,  and  if  on  such  review 
the  commissioner  finds  the  condition  of  the  employe  warrants 
such  action,  he  may  end,  diminish  or  increase  the  compensation, 
subject  to  the  maximum  or  minimum  amounts  provided  for  in 
this  act.  All  hearings  upon  review  of  the  Iowa  industrial  com- 
missioner under  the  provisions  of  this  section,  or  under  section 
twenty-four  hundred  seventy-seven-m-32  (2477-m-82),  suiiplement 
to  the  code,  1913,  shall  be  held  at  Des  Moines,  Iowa,  unless  the 
interested  parties  and  the  Iowa  industrial  commissioner  mutually 
agree  by  written  stipulation  that  the  same  may  be  held  at  some 
other  place. 

Where  an  award  under  act  limited  to  a  period  not  exceeding  300 
weeks,  is  made  subject  to  reduction,  if  employe's  condition  improves  so 
that  he  can  earn  part  wages,  the  burden  as  to  change  or  continuance 
of  condition,  in  proceedings  to  enforce  payment,  is  on  the  employer. 

Fischer  vs.  Priebe  &  Company — 160  N.  W.  48. 

Upon  the  presentation  to  the  court  of  a  certified  co])y  of  a 
decision  of  the  industrial  commissioner  ending,  diminishing  or  in- 


212  APPENDIX    (Compensation) 

creasing  a  weekly  payment  under  the  provisions  of  this  act,  the 
court  shall  revoke  or  modify  any  judgment  or  decree  then  on 
record  in  his  court  to  conform  to  such  decision. 

(b)  Any  notice  to  be  given  by  the  commissioner  or  court 
provided  for  in  this  act  shall  be  in  writing  but  service  thereof 
shall  be  sufficient  if  registered  and  deposited  in  the  mail,  ad- 
dressed to  the  last  known  address  of  the  parties. 

Sec.  2477-in35.  Fees  subject  to  approval.  Fees  of  attorneys 
and  physicians  for  services  under  this  act  shall  be  subject  to  the 
approval  of  the  industrial  commissioner  unless  otherwise  pro- 
vided in  this  act. 

Sec.  2477-m36.      Reports    by    employers — records — inspection. 

Every  employer  shall  hereafter  keep  a  record  of  all  injuries, 
fatal  or  otherwise,  sustained  by  his  employes  in  the  course  of 
their  employment  and  resulting  in  incapacity  for  a  longer  period 
than  one  day.  Within  forty-eight  hours,  not  counting  Sundays 
and  legal  holidays,  after  the  employer  has  knowledge  of  the  oc- 
currence of  an  accident  resulting  in  personal  injary  causing  in- 
capacity for  a  longer  period  than  one  day,  a  report  shall  be  made 
in  writing  by  the  employer  to  the  industrial  commissioner  on 
blanks  to  be  procured  from  the  commissioner  for  that  purpose. 

Upon  the  termination  of  the  disability  of  the  injured  employe, 
or  if  such  disability  extends  beyond  a  period  of  sixty  days,  at 
the  expiration  of  such  period,  the  employer  shall  make  a  supple- 
mental report  on  blanks  to  be  procured  from  the  commissioner 
for  that  purpose.  The  said  reports  shall  contain  the  name  and 
nature  of  the  business  of  the  employer,  the  location  of  the  estab- 
lishment, the  name,  age,  sex  and  occupation  of  the  injured  em- 
ploye, and  shall  state  the  date  and  hour  of  the  accident,  the  na- 
ture and  cause  of  the  injury,  and  such  other  information  as  may 
be  required  by  the  commissioner.  Any  employer  who  refuses 
or  neglects  to  make  the  report  required  by  this  section  shall  be 
punished  by  a  fine  of  not  more  than  fifty  dollars  for  each  offense. 

All  books,  records  and  pay  rolls  of  the  employers,  coming  under 
this  act  showing  or  reflecting  in  any  Avay  upon  the  amount  of 
wage  expenditure  of  such  employer,  shall  always  be  open  for  in- 
spection by  the  industrial  commissioner,  or  any  of  his  represen- 
tatives presenting  a  certificate  of  authority  from  said  commis- 
sioner for  the  purpose  of  ascertaining  the  correctness  of  the  wage 
expenditure;  the  number  of  men  employed  and  such  other  infor- 
mation as  may  be  necessary  for  the  uses  and  purposes  of  the  com- 
missioner in  his  administration  of  the  law.  But  information  ob- 
tained within  the  contemplation  of  this  act  shall  be  used  for  no 
other  purpose  than  the  information  of  the  commissioner  or  in- 
surance association  with  reference  to  the  duties  imposed  upon 


APPENDIX    (Compensation)  213 

such  commissioner.  A  refusal  on  the  part  of  the  employer  to 
submit  his  books,  records  or  pay  rolls  for  the  inspection  of  the 
commissioner,  or  his  authorized  representatives  presenting  writ- 
ten authority  from  the  commissioner,  shall  subject  the  employer 
to  a  penalty  of  one  hundred  dollars  for  each  such  offense,  to  be 
collected  by  civil  action  in  the  name  of  the  state,  and  paid  into 
the  state  treasury. 

Sec.  2477-m37.  Political  activity  and  contributions  prohibited 
— penalty.  It  shall  be  unlawful  for  the  commissioner,  during  his 
term  of  office,  to  serve  upon  any  committee  of  any  political  party 
or  espouse  the  election  or  appointment  of  any  person  for  any  polit- 
ical office  or  contribute  to  any  campaign  fund  of  any  political 
party,  or  to  the  campaign  fund  of  any  person  who  is  a  candidate 
for  election  or  appointed  to  any  political  office.  A  violation  of 
this  section  shall  be  deemed  a  misdemeanor  and  uj^on  conviction 
shall  be  fined  one  hundred  dollars. 

See.  2477-m38.  Candidates  for  commissioner — political  prom- 
ises prohibited — penalty.  It  shall  be  unlawful  for  any  person 
who  is  a  candidate  for  the  appointment  as  commissioner  to  make 
any  promise  to  another,  expressed  of  implied,  in  consideration 
of  any  assistance  or  influence  given  or  recommendation  made 
that  the  candidate  will,  if  appointed  as  commissioner,  vote  to  ap- 
point such  person  or  one  whom  he  may  recommend  to  an  office 
within  the  power  of  the  commissioner  to  appoint.  A  violation 
thereof  shall  be  deemed  a  misdemeanor  and  upon  conviction 
thereof  shall  be  fined  one  hundred  dollars. 

Sec.  2477-m39.  Recommendations  of  candidates  to  be  in  writ- 
ing— record — public  inspection — financial  interest  prohibited — 
penalty.  All  recommendations  made  by  any  person  to  the  com- 
missioner asking  the  appointment  of  another  as  commissioner 
shall  be  reduced  to  writing  signed  by  the  person  presenting  the 
same,  which  shall  be  filed  by  the  governor  in  his  office,  and  open 
at  all  reasonable  times  for  public  inspection,  and  all  recommenda- 
tions made  by  any  person  to  the  commissioner  for  the  appoint- 
ment of  another  within  the  power  of  the  commissioner  to  ap- 
point, shall  be  reduced  to  writing,  signed  by  the  person  pre- 
senting the  same  and  filed  by  the  commissioner  and  open  for 
public  inspection  at  all  reasonable  times  and  hours.  If  any  per- 
son recommending  the  appointment  of  another  within  the  con- 
templation of  this  act  refuse  to  reduce  the  same  to  writing,  it 
shall  be  the  duty  of  the  person  to  whom  the  recommendation  is 
made,  to  make  a  brief  memorandum  thereof,  stating  the  name  of 
the  person  recommended  and  the  name  of  the  person  who  made 
the  same,  which  shall  be  filed  as  by  this  act  in  other  cases  pro- 
vided. It  shall  be  unlawful  for  the  commissioner  to  be  financialh' 
interested  in  any  business  enterprise  coming  under  or  affected  by 
this  act  during  his  term  of  office,  and  if  he  offend  this  statute,  it 


214  APPENDIX    (Compensation) 

shall  be  sufficient  grounds  for  his  removal  from  office  and  in  such 
case  the  ofovernor  shall  at  once  declare  the  office  >acant  and  ap- 
point another  to  fill  the  vacancy. 

Sec.  2477-m40.  Removal  from  office — filings  of  charges — execu- 
tive council  shall  hear.  The  governor  shall  remove  from  office 
the  commissioner  on  the  grounds  of  inefficiency,  neglect  of  duty, 
or  malfeasance  in  office,  upon  written  charges  having  been  filed 
with  the  executive  council  and  sustained  by  proofs;  but  written 
notice  of  such  charges,  together  with  a  copy  thereof,  shall  be 
served  upon  the  accused  ten  days  before  the  time  fixed  for  hear- 
ing. The  executive  council  shall  have  jurisdiction  to  hear  the 
case,  and  shall  make  such  finding  in  accordance  with  justice  and 
the  law.  The  finding  shall  be  reduced  to  writing,  and  report  and 
finding  filed  with  the  governor. 


PART  III. 


Sec.  2477-m41.  Insurance  of  liability.  Every  employer,  sub- 
ject to  the  provisions  of  this  act,  shall  insure  his  liability  there- 
under in  some  corporation,  association  or  organization  approved 
b}^  the  state  department  of  insurance.  Every  such  employer  shall 
within  thirty  days  after  this  act  goes  into  effect  exhibit  on  de- 
mand of  the  state  insurance  department  evidence  of  his  compli- 
ance with  this  section;  and  if  such  employer  refuses  or  neglects 
to  comply  with  this  section,  he  shall  be  liable  in  case  of  injury 
to  any  workman  in  his  employ  under  the  common  law  as  modified 
by  statute,  and  in  the  same  manner  and  to  the  same  extent  as 
though  such  employer  had  legally  exercised  his  right  to  reject 
the  compensation  provisions  of  chapter  eight  (8) -a,  title  XII, 
supplement  to  the  code,  1913. 

Any  employer  who  fails  to  insure  his  liability  as  required 
herein  shall  post  and  keep  posted  a  sign  of  sufficient  size  and  so 
placed  as  to  be  easily  seen  by  his  employes  in  the  immediate  vicin- 
ity where  working,  which  sign  shall  read  as  follows: 

NOTICE   TO   EMPLOYES 

You  are  hereby  notified  that  the  undersigned  employer  has  failed  to 
insure  his  liability  to  pay  compensation  as  required  by  law,  and  that 
because  of  such  failure  he  is  liable  to  his  employes  in  damages  for  per- 
sonal injuries  sustained  by  his  employes  in  the  same  manner  and  to 
the  same  extent  as  though  he  had  legally  exercised  his  right  to  reject 
the  compensation  provisions  of  chapter  eight-a  (8-a),  title  XII,  supple- 
ment to  the  code,  1913. 

( Signed ) 

Any  employer  coming  under  the  provisions  of  this  act  who  fails 
to  comply  with  this  section  or  to  post  and  keep  posted  the  above 


APPENDIX    (Compensation)  215 

notice  in  the  manner  and  form  herein  required  shall  be  guilty 
of  a  misdemeanor. 

Sec.  2477-m42.  Mutual  companies — conditions.  For  the  pur- 
pose of  complying'  with  the  foregoing  section,  groups  of  employ- 
ers by  themselves  or  in  an  association  with  any  or  all  of  their 
workmen,  may  form  insurance  associations  as  hereafter  provided, 
subject  to  such  reasonable  conditions  and  restrictions  as  may  be 
fixed  by  the  state  insurance  department  and  membership  in  such 
mutual  insurance  organization  as  approved,  together  with  evi- 
dence of  the  payment  of  premiums  due,  shall  be  evidence  of 
compliance  with  the  preceding  section. 

Sec.  2477-m43.  Benefit  insurance — approval.  Subject  to  the 
approval  of  the  Iowa  industrial  commissioner,  any  employer  or 
group  of  employers  may  enter  -into  or  continue  an  agreement 
with  his  or  their  workmen  to  provide  a  scheme  of  compensation, 
benefit  or  insurance  in  lieu  of  the  compensation  and  insurance^ 
provided  by  this  act ;  but  such  scheme  shall  in  no  instance  provide 
less  than  the  benefits  here  secured  nor  vary  the  period  of  com- 
pensation provided  for  disability  or  for  death,  or  the  provisions 
of  this  act  with  respect  to  periodic  payments,  or  the  percentage 
that  such  payments  shall  bear  to  weekly  wages,  except  that  the 
sums  required  may  be  increased;  provided,  further,  that  the  ap- 
proval of  the  Iowa  industrial  commissioner  shall  be  granted,  if 
the  scheme  provides  for  contribution  by  workmen,  only  when  it 
confers  benefits  in  addition  to  those  required  by  this  act  commen- 
surate with  such  contributions. 

Sec.  2477-m44.  Certificate  of  approval.  Whenever  such  scheme 
or  plan  is  approved  by  the  Iowa  industrial  commissioner,  he  shall 
issue  a  certificate  to  that  effect,  whereupon  it  shall  be  legal  for 
such  employer,  or  group  of  employers,  to  contract  with  any  or  all 
of  his  or  their  workmen  to  substitute  such  scheme  or  plan  for 
the  provisions  of  this  act  during  a  period  of  time  fixed  by  said 
department. 

Sec.  2477-m45.  Termination — appeal  to  district  court.  Such 
scheme  or  plan  may  be  terminated  by  the  Iowa  industrial  com- 
missioirer  on  reasonable  notice  to  the  interested  parties  if  it  shall 
appear  that  the  same  is  not  fairly  administered,  or  if  its  opera- 
tion shall  disclose  latent  defects  threatening  its  solvency,  or  if 
for  any  substantial  reason  it  fails  to  accomplish  the  purpose  of 
this  act,  but  from  any  such  order  of  said  Iowa  industrial  commis- 
sioner the  parties  affected,  whether  employer  or  workman,  may, 
upon  the  giving  of  proper  bond  to  protect  the  interests  involved, 
appeal  for  e(}uitable  relief  to  the  district  court  of  this  state. 

Sec.  2477-m46.  Maximum  commission  or  compensation  for  re- 
insurance.    No   insurer   of  any   obligation  under  this  act   shall 


216  APPENDIX    (Compensation) 

either  by  himself  or  through  another,  either  directly  or  indi- 
.rectly,  charge  or  accept  as  a  commission  or  compensation  for  plac- 
ing or  renewing  any  insurance  under  this  act  more  than  fifteen 
per  cent  of  the  premium  charged. 

Sec.  2477-m47.  Policy  requirements.  Every  policy  issued  by 
any  insurance  corporation,  association  or  organization  to  assure 
the  payment  of  compensation  under  this  act  shall  contain  a  clause 
providing  that  between  any  employer  and  the  insurer,  notice  to 
and  knowledge  of  the  occurrence  of  injury  or  death  on  the  part 
of  the  insured  shall  be  notice  and  knowledge  on  the  part  of  the 
insurer ;  and  jurisdiction  of  the  insured  for  the  purpose  of  this 
act  shall  be  jurisdiction  of  the  insurer  and  the  insurer  shall  be 
bound  by  every  agreement,  adjudgment,  award  or  judgment  ren- 

dere'd  against  the  insured. 

• 

Sec.  2477-m48.    Insolvency  clause  prohibited — lien  of  insured. 

No  polic}^  of  insurance  issued  under  this  act  shall  contain  any 
provisions  relieving  the  insurer  from  payment  if  the  insured  be- 
comes insolvent  or  discharged  in  bankruptcy  during  the  period 
that  the  policy  is  in  operation,  or  the  compensation,  or  any  part 
of  it,  is  due  and  unpaid.  Every  policy  shall  provide  that  the 
workman  shall  have  a  first  lien  upon  any  amount  becoming  due 
on  account  of  such  policy  to  the  insured  from  the  insurer,  and 
that  in  case  of  the  legal  incapacity,  inability  or  disability  ot: 
the  insured  to  receive  the  amount  due  and  pa^^  it  over  to  the  in- 
sured-workman,  or  his  dependents,  said  insurer  shall  pay  the  same 
directlj'  to  such  workman,  his  agent,  or  to  a  trustee  for  him  or 
his  dependents,  to  the  extent  of  discharging  any  obligations  of 
the  insured  to  said  workman  or  his  dependents. 

Sec.  2477-m49.     Proof  of  solvency — ^revocation    of    approval. 

Where  an  employer  coming  under  this  act  furnishes  proofs  to  the 
insurance  department  satisfactor}^  to  the  insurance  department 
and  Iowa  industrial  commissioner,  of  such  employer's  solvenc}^ 
and  financial  ability  to  pay  the  compensation  and  benefits  as  by 
this  act  provided  and  to  make  such  payments  to  the  parties  when 
entitled  thereto,  or  when  such  emploj^er  deposits  with  such  in- 
surance department  security  satisfactory  to  such  insurance  de- 
partment and  the  Iowa  industrial  commissioner  as  will*  secure 
the  payment  of  such  compensation,  such  employer  shall  be  re- 
lieved of  the  provision  of  section  forty-two  of  this  act ;  provided 
that  such  employer  shall  from  time  to  time,  as  may  be  required 
by  such  insurance  department  and  Iowa  industrial  commissioner, 
furnish  such  additional  proof  of  solvency  and  financial  ability 
to  pay  as  by  this  section  of  this  act  provided. 

The  insurance  department  and  Iowa  industrial  commissioner 
may,  at  any  time,  upon  reasonable  notice  to  such  employer  and 
upon  hearing,  revoke  for  cause  any  order  or  approval  theretofore 


APPENDIX   (Compensation)  217 

made,  as  by  this  act  provided  and  within  the  contemplation  of 
this  section. 

Sec.  2477-m50.  When  effective.  Part  one  of  this  act  shall 
take  effect  from  and  after  July  first,  nineteen  hundred  fourteen, 
and  parts  two  and  three  July  fourth,  nineteen  liundred  tliirteen, 
and  any  employer  or  employe  who  serves  the  notice  to  reject  the 
terms  of  the  act  as  by  the  act  provided  not  less  than  thirty  days 
before  part  one  thereof  takes  effect,  such  notice  for  the  purpose 
of  rejecting  the  terms  of  the  act  shall  have  the  same  force  and 
effect  as  though  part  one  had  taken  effect  July  fourth,  nineteen 
hundred  thirteen. 

Sec.  2477-m51.  When  applicable.  That  the  law  enacted  hy 
the  thirty-fifth  general  assembly  known  as  senate  file  number 
three  relating  to  employers'  liability  for  personal  injury  sus-» 
tained  by  employes  in  line  of  duty,  and  fixing  compensation 
therefor,  shall  not  apply  to  an  injury  sustained  by  such  employe 
of  such  employer  which  occurs  prior  to  the  time  when  such  act 
takes  effect  in  all  of  its  parts ;  but  the  law  and  procedure  in  force 
at  the  time  such  injury  occurs,  if  before  such  act  takes  effect 
in  all  of  its  parts,  shall  be  the  same  as  though  such  act  had  not 
been  enacted,  whether  such  action  is  brought  before  or  after 
such  act  takes  effect  in  all  of  its  parts. 


Index 


Index 


Actions:      (See  suit  or  actions). 

Advertisements : 

May  not  advertise  authorized   capital,   §   1783-g. 

Penalty,  §  1783-h. 
Misleading  statements,  §  175  8-f. 

Penalty,  §  1758-g. 
Soliciting   agents. 

Life,   §  1815. 

Other  than  life,  §  1749. 

Agents : 

Assessment   life   associations. 
License,   §   1800. 

Penalty,   §   1801. 

Recovery,  §  1802. 
Praternals,    §    1833. 

False  representations  by  officers  or  agents,  §  1838. 
Illegal  business,   §    1837. 

Penalty    for    soliciting    new    business    after    revocation    of    au- 
thority,  §  183  9-f. 
Life   insurance   companies. 

Advertisements — who   deemed  agents,    §    1815. 
Fraud  in  procuring  insurance,   §   1816. 
Misrepresentations   prohibited,    §    1820-b. 

Penalty   §   1820-c. 
Provisions  applicable,    §    1815. 
Other   than    life    companies. 

Advertisements  of  agents,   §   1749. 

May  advertise  individual  business  without  mentioning  name  of 

company,  §   1758-h. 
Misleading   statements,    §    175  8-f. 

Penalty,   §    1758-g. 
Must  have  certificate,   §  1725. 
Resident    agent — foreign    fire    companies,    §    1739. 

Penalty,   §   1740. 
Soliciting  agents  defined,   §  1749. 
Who  deemed  agents,  §  17  5  0. 
Provisions  of  general  applicability. 
License,    §    1821-k. 

Penalty,   §   1821-1. 
Must  have  certificate,  §  1800. 

Penalty,  §  1801. 

Recovery,   §   1802. 
Rebating  and  discrimination,  §   1782. 

Penalty,    §    1783. 
Service   of  notice   of   suit   on   agent,   §    3530    (Miscl.   Sections). 

Page  142. 
Solicitation  of  business  after  revocation  of  authority,  §  1821-f. 
Solicitation   of  proxies,   §    182 1-y. 

Penalty,   §   18  21-z. 
Reciprocals,    §    13,   Ch.   180,   37th   G.   A.    (Miscl.   Sections).      Page 

137. 
State  and  county  mutuals. 

Agents  licensed  for  state  mutuals,   §   15,   Ch.   120,   39    G.   A. 

Page  67. 


INDEX  221 


Penalty  for  acting  without  license,  §  15,  ibid.     Page  67. 
Revocation  of  license,  ^   15,  ibid.     Page  67. 

Amortization    oi'    Securities:       Life    companies    and    associations,    Ch. 
198,   39   G.  A.      Page   80. 

Annual  Statcnionts: 

Assessment   life,   accident  and  health  associations,   §    1790. 

Convention    form,    §    18  20-d. 
Fraternals,    §    1830. 

Child  insurance,  special  annual  statement,   §   1822. 
Foreign  companies. 

Other   than  life,    §   1716. 

Life,   §§    1773,   1799. 

Penalty  for  violation  of  provisions,   §§   1801,   1802. 
Life  companies,   §§    1773   and   1799. 

Convention   form,    §    1820-d. 

Penalty  for  failure  to  file,  §§  1776  and  1801. 
Other  than   life,   §    1714. 
Printed   form,    §§    1819   and   1820-d. 

Reciprocals,  §  7,  Ch.  180,  37  G.  A.   (Miscl.  Sections).     Page  136. 
State  and  county  mutuals,  §  5,  Ch.  120,  39th  G.  A.     Page  64. 

Application : 

Assessment  life  associations. 

Should  be  attached  to  policy,   §   1819. 
Fraternals. 

Should   be  attached  to   certificate,   §   182  6. 
Life  companies. 

Should  be  attached  to  policy,   §  1819. 
Other  than  life  companies. 

Should  be  attached  to  policy,  §  1741. 

Arbitration:      Other  than   life,   §   1743. 

Articles  of  incorporation:    (See  promotion  and  organization  and  capital 

stock). 
Assessment,    accident    and    health    associations,    approved    of    by 

commissioner,  §   1785, 
Fraternals. 

Approved  by  commissioner,  §   1832. 

Foreign  associations  must  file,  §   1829. 
Life  companies — approved  by  the  commissioner,  §   1768. 
Other  than   life — incorporation   of,   §    16  84. 

Approval  by  the  commissioner,  §  168  5. 

Recording  of,    §§    1686    and   1688. 
State  and   county   mutuals — approval    by   commissioner,    §    3.    Cli. 

'  120,    39th   G.   A.      Page    62. 
Provisions   bearing  on   articles   of   incorporation. 

Proportionate    representation,    stock    companies,    5?    lS21-v-w. 

Voting  by  proxies,   §   1821-x. 

Assessment  Life,  Accident  and  Health  Associations: 

Agents  licensed,  §  1821-k. 

Penalty  for  violation,  §   1821-1. 
Applicability  of  chapter   8-a,   §   1821-i. 
Applicability  of  chapter  8-b,  §  1821-m. 
Approval  of  policy  forms,   5^   1787. 

Approval  of  articles  and  by-laws  by  commissioner,   ^   1785. 
Assessments,  §  1788. 
Assignment   of  policies,   §    1789. 
Beneficiaries,  §  1789. 
Certificate  of  compliance,   §   179  6. 

15 


222  INDEX 


Certificate  of   membership  are  policies,    §   1785. 
Conditions  precedent  to   doing  business,    §    1787. 
Defined,  §  1784, 
Deposit  with  commissioner  of  insurance,   §   1791. 

Change  of  securities,  §    1792. 

Collection  of  interest,  §  17  93. 
Distribution  of  surplus,   §   1797. 
Foreign   assessment  associations,    §    179  4. 
Insurable  age,    §    1789. 
Investment  of  accumulations,   §   1791. 

Name  shall  not  be  similar  to  the  name  of  another  assn,  §1786. 
Officers  and  directors  shall  not  gain  through  investment  of  com- 
pany's funds,   §   13,   Ch.   348,  38   G.  A.    (Miscl.  Sections).     Page 

133. 
Organization   or   authorization   prohibited,    §    17  98-a. 
Proceedings  to  control  or  wind  up,   §   1795. 
Provisions  applicable  to  accident  and  health  association. 

Consolidation — expense — penalty,    §    1821-r-t-u. 
Provisions  applicable  to  life  associations. 

Agent's  certificate,   §    1800. 
Penalty,   §    1801. 
Recovery,  §   1802. 

Consolidation  of  associations,   §    1821-n-o-p-Q. 
With   unauthorized   companies,   §   1821-s. 
Penalty — violation   of  consolidation   provisions,    §    1821-u. 
Expenses     of     proceedings     for     approval     of     consolidation, 
§    1821-t. 
Re-incorporation  as  legal  reserve  company,  §  17  9  8-b. 
Service  of  process,  §  1798. 
Service  on  Agent  of  association,  §   3530    (Miscl.   Sections).     Page 

142. 
Shall  not  loan  funds,  nor  invest  its  funds  on  property  owned  by 

officers    or    directors    or    members   of    their    immediate    family. 

Sec.  13,  Chap.  348,  38th  G.  A.    (Miscl.  Sections).     Page  133. 
Soliciting  proxies  by  agent,    §    1821-y. 

Penalty,    §    1821-z. 
Surrender  values,   §    1797. 
Valuation  of  policies,   §   1798-a. 
Voting  by  proxies,   §   182 1-x. 
Where  suit  may  be  brought,  §  3499.     (Miscl.  Sections).     Page  141. 

Blue  Sky  L.avvs:     Promotion  of  companies,  Ch.  22  4,  39  G.  A.     Page  2. 
Sale  of  Stock  with  policies,   Ch.   181,   39   G.  A.     Page  109. 

Board  of  Supervisors:      May   insure    county   buildings,    §    4  22    (Miscl. 
Sections).     Page  139. 
May  spend  money  received  from  insurance  for  reconstruction,  of 
of  buildings  destroyed,  S  425   (Miscl.  Sections).     Fage  139. 

By-Laws : 

Assessment  life,   accident  and   health   associations.      Approved   by 

commissioner,  §  17  85. 
Fraternals — approval   by  commissioner,   §    1832. 

Foreign  fraternals  must  file,  §  1829. 
State    and    county    mutuals — Approval    by    commissioner,    Sec.    3, 

Ch.  120,  39th  G.  A.  Page  62. 

Capital  Stock:       (See  Articles  of  Incorporation  and  Promotion  and  Or- 
ganization) . 
Advertisements — foreign  fire  companies,   §§   1739,   1740. 
Advertisements  and  publications,  §  1783-g. 

Violation — penalty,    §    1783-h. 
Amount  stated   in  articles — life  companies,   §   1768. 


INDEX  22:J 


Foreign  companies — other  than  life, — capital  required.  §   1721. 
Impairment — other  than  life — dissolution,  §§   1731,  1732. 
Life  insurance  companies — amount,  §  1769- 
Deposit,   §§   1769,   1806. 
Investments,  1803,  1806,  1807. 
Officers  or  directors  not  to  profit  from  loans  or  investments,  §   3, 
Ch.   348,   38  G.  A.    (Miscl.   Sections).     Page  133. 

Loans  to  officers  and  directors — other  than  life,  §  1783-e. 
Other  Than  Life  Companies. 
Amount,    §§    1691    and    1783-e. 

(Part    of    §    1691    repealed    by    implication    by    amendment    to 
§    1783-e  by   39th   G.  A.) 
Examination — statement  of  capital,  §  1700. 
Increase  in   capital,   §   1701. 
Investment  of,   §   1699. 
Subscription  to,  §   1694. 
Taxation  of  capital — domestic  companies,  §  1310. 
Transfer  of  stock  pending   investigation,   §§    1734,    1821-c. 

Casualty  Insurance:      Authorized,    §    1709. 

(See   Other   Than   Life   Insurance,   Mutual   Companies,   Stock 
Companies) . 

Certiftcate  of  Authority: 

Assessment  life,  health  and  accident  associations,  §  1796. 

Proceedings  for  control  or  windup,  §   1795. 
Fraternals,    §    183  2. 

Revocation  of  authority,   §  1839-d. 
Life    companies. 

Annual    certificate,    §    1775. 
Revocation,    §    1775, 

Mutual   companies,    §    1770. 

Stock  companies,  §  1769. 
Other   Than   Life. 

Refused,  §  1715. 

If  name  is  similar  to  name  of  another  company,  ^  16  87. 

Revocation    of — foreign    companies,    §    1735 — domestic    com- 
panies   §    182 1-d. 

Revocation  generally,   §  1755 — Appeal,   §   175  6. 
Reciprocals,  §  9,  Ch.  180,  37  G.  A.    (Miscl.  Sections).     Page  136. 

Refusal  or  revocation,  §  11,  ibid.     Page  13  7. 
State  and  county  mutuals,  §  3,  Ch.  120,  39  G.  A.     Page  62. 

Dissolution,  §   8,  ibid.     Page  65. 

Expiration  of  certificate,   §   14,. ibid.     Page   67. 

Certificate  of  Compliance:      Publication — Other  Than  Life,   §   1737. 
Children's    Insurance:      Fraternals, — conditions,    §    1822. 
Co-Insurance:    .Other  Than  Life,   §   1746. 

Commissioner  of  Insurance: 

Additional  clerks  and  assistants.   §   1683-r2. 

Appointment,   confirmation,   removal,  term,  vacancy,   §   1683-r. 

Bond  of  Commissioner,  §  1683-r. 

Deputy — bond — appointment — term,    §    1683-r 2. 

Expenses    and    salaries,    §    1683-r2. 

Fees — paid  to,  8  1683-r5. 

Powers  and  duties  generally,  §  1683-r3. 

Promotion  and  organization  of  companies — duties,   Ch.   22  4,   39th 

G.    A.      Page   2. 
Transfer  of  records,  securities  and  equipment  to,  §  1083-r4. 
Various  powers  and  duties  specified. 


224  INDEX 


Assessment   life,    accident   and   health   associations. 
Approval  of  Articles  and  By-Laws,   §   1785. 
Approval  of   Bonds  of  Officers,   §    1790. 
Approval   of  Policj^  Forms,  §   17  8  7, 
Annual  Statement,  §  1790. 
Certificate    of    Compliance,    §    1796. 
Change  of  Securities,   §   1792. 
Collection  of  interest,    §   17  93. 
Examinations — expenses,   §   1790. 
Examination   of  foreign   associations,    §    1794. 
Deposits,   §  1791. 
Power  of  Attorney,   §   1798. 
Proceedings  to  control  or  wind  up,  §  1795. 
Service   of  process,    §    1798. 
Fraternal  Societies. 

Annual   Certificate,    §    1832. 

Annual   Report,   §    1830. 

Appointment   of   Receiver   on   Application   of   Attorney   General 

only,    §    1839-m. 
Approval  of  Articles  and  By-Laws,  §  18  32. 
Approval  of  Plan  of  Consolidation  or  Reinsurance,  §  18  39-g. 

Expenses,   §   1839-h. 

Penalt5%    §    1839-i. 
Examinations — assistants — compensation,    §    1839-b. 

Expenses,   §   1839-e. 

Officers  of  Societies  to  assist,  §  183 9-c. 
Examination   pending  receivership,   §   1839-n. 
Examination  report  not  public  until  after  hearing,  §   1839-0. 
Fees,    §    1832. 
Foreign    Fraternals    must    file    By-Laws,    §    1829. 

May    examine    society   applying    for    admission,    §    1829. 
Proceedings  for  violation  of  statutes.  §  1836. 
Revocation  or  suspension  of  authority,  §  18  39-d. 
Revocation  of  authority — improper  investments,  §  18  39-1. 
Real  estate  held  in  trust  for  members,  §  1839-k. 
Service  of  process,  §  1831. 
Transfer    to    legal    reserve,    level    premium    company,    Ch.    302, 

38  G.  A.     Page  130. 
Valuation   of   Policies,    §    1839-j. 
Guarantee  Companies. 

Certificates    for    Guarantee    Companies    acting    as    surety,    3  60 

(Miscl.   Sections).      Page  138. 
Service  of  Process,   362    (Miscl.   Sections).     Page  139. 
Life  Companies. 

Annual   Certificate,    §    1775. 

Annual  Report,   §   1781. 

Approval  of  Articles  and  all  Amendments,  §  1768. 

Approval  of  Policies,  §  1783-a. 

Certificate   of   Authority. 

Mutual,    §    1770. 

Stock,  §  1769. 
Consolidation   of  Companies,    §    1821-n-o-p-q. 

Expenses,   §    1821-p. 

Penalty,   S   1821-u. 

With   unauthorized   companies,  prohibited,    §    182 1-s. 
Dissolution,  §§  1776,  1777. 
Discretion    in    calculation    of   valuation    of   securities,    Ch.    198, 

39th   G.  A.      Page   80. 
Examination,    §    1777. 
Fees,  §  1818. 


INDKX  225 


Real  estate  held  in  trust  by,  §  1806. 

Commissioner  to  determine  value  of  real  estate,   §   180  0. 
Receiver,   §  1777. 
Sale  of  stock  with  policies  prohibited, — Power  of  Commissioner 

Ch.   181,  39  G.  A.     Page  109. 
Service  of  process,  ;^?i   1808.   1809. 
Valuation  of  Policies,  §  1774. 
Other  Than  Life  Companies. 
Acceptance  of  Service,   8   1722. 
Agent's  Certificate  of  Authority,   §§   17  25,   1821-k. 

Penalty,  5^  1821-1- 
Annual    Report,    §    1720-a. 
Annual    Statement,    §    1714. 

Printed  Form,  §  1719. 
Applicability  of  Chapter  8-A  to  all  classes  of  companies,  ^5  1821-1. 
Approval  of  Articles  of  Incorporation,  §  1G85. 
Approval  of  Policy  Forms,  §  174.5. 
Certificate  of  Authority,   §    1700. 

Refused,  §  1715. 

Revocation  of.  §   1821-d. 

Certificate  of  foreign  companies,  5^  17  24. 
Certificates   of  Compliance — Publication,   §    173  7. 
Consolidation  of  Companies,  §  1821-r. 

Expenses,    §    1821-t. 

Penalty,    §    1821-u. 

With  unauthorized  companies  prohibited,   §   1821-s. 
Examination,  §   1700. 

Biennial  examination,  §  1821-a. 

Companies  to  assist,   §   1821-d. 

Dissolution,    §    1731. 

Evidence,  §  1757. 

Examiner's   compensation  and  expenses,    §    1821-c. 

Foreign    companies,    §    1753. 

Publication  of  results,   §   1821-d. 

Non-resident    companies,    §    1821-h. 
Fees,    §    1752.  _ 

Mutual    Companies — Assessment    for    deficiency,    §     (,   Ch.    4- J, 

37   G.   A.      Page   8. 

Repayment  of  loans  to  Directors  and  Officers,  §  8,  ibid.     Page 

8- 

Name  of  Company — Must  not  be  similar.  §  168  <. 

Organization   of   Mutual   Companies.    §    169  2. 

Refusal  to  be  examined — Penalty.   §   1821-g. 

Requisition   on   Stockholders,   §    1732. 

Revocation   of  Certificate  of  Foreign  Companies,   !i    1 ''^;'- . 

Sale  of  Stock  with  Policy  prohibited,— Powers  of  Commissioner, 
Ch.   181,   39th  G.  A.      Page   109. 

Service    of    Process,    §    1722. 

Short  Rate  Table,  §  1729. 
Reciprocals,    (Ch.   180,   37th  G.  A.)    (Miscl.  Sections). 

Annual   Statement.   §   7.     Page   13  6. 

Approval    of   Policies,    S    14.      Page    138. 

Certificate  of  Authority,   §   9.      Page   13  6. 

Examination,    §   7.     Page   13  6. 

Preliminary   Showing.    ^   3.      Page    133. 

Refusal  or  Revocation  of  Certificate,   5i   U-      Page   137. 

Service   of  Process.    S    4.      Page  134. 
State  and  County  Mutuals.   (Ch.  120.  39th  G.  A.) 

Agents — License  and   Control  of,   ij   15.     Page   67. 

Annual  State.  §   5.      Page  64. 

Approval  of  Investments  and  Real  Estate,  §   4.     Page  63. 


226  INDEX 


Approval  of  Articles,  By-laws,  Policies,  §  3.     Page  62. 

Bonds  of  Officers,  Approval,    §    10.      Page   6  6. 

Certificate  of  Authority — Conditions  precedent,   §   3.      Page   62. 

Dissolution,   §   8.     Page   65. 

Examinations,  §§  8,  12.     Pages  65  and  67. 

Consolidation  of  Companies: 

Fraternals,  §  1839-g-h-i. 

Life  companies  and   associations,   §   1821-n-o-p-q-s-t-u. 

Other  Than  Life,  §  1821-r-s-t-u. 

County  Mutuals:       (See  State  and  County  Mutuals). 

Deposit  of  Securities:       (With   Insurance   Commissioner). 

Assessment  life,  accident  and  health  associations,  §  1791. 

Change  of  securities,  §  1792. 

Collection  of  interest,   §   1793. 
Fraternal    Societies,    §    1839-1. 
Life  Insurance  Companies,   §§   1769,   1806. 

Change  of  securities,   §   1779. 

Collection  of  interest,  §   1780. 
Defaulting  or  insolvent  companies,  §  1778. 

Foreign  companies — deposit  in  home  state,  §   1772. 

Reserves — valuation  of  policies,  §  1774. 

Directors  and  Officers: 

Advancement  of  funds — mutual  companies,   §  8,  h.  429,   37   G.  A. 

Page    8. 
Assessment  associations — bonds   of  officers,   §§    1787,    1790. 
Attorney    in    fact — reciprocals,    §    2,    Ch.    180,    37    G.    A-    (Miscl. 

Section).     Page  133. 
Capital   stock   fund   not   to   be   loaned   or   invested   in   property   of 

directors    or    officer    or    member    of    immediate    family,    §     13, 
Ch.  348,  38th  G.  A.   (Miscl.  Sections).     Page  133. 
Discrimination  and  rebating,   §   1782. 

Penalty,   §    1783. 
Doing  business  without  compliance,   §   1747. 

Officers  punished,   §    1748. 
Election    of,    §    1696. 
Fraternal   societies. 

False  representations  by  officers   or  agents,    §    1838. 

Illegal  business,   §   1837. 

Officers  to  assist  in  examination,  §  1839-c. 

Penalty   for    soliciting   business    after    revocation    of   authority, 
§§    1839-f. 

Penalty  for  violation  of  certain  sections,  §   1839-i. 
Life   companies. 

Advertisements,   §    1815. 

Fraud  in  procuring  insurance,   §    1816. 

May  not  borrow  from  capital  stock,   §   176  9. 

Misrepresentations   prohibited,    §    1820-b. 
Management  of  companies — directors,    §    169  5. 
Misleading   statements,    §    175  8-f. 

Penalty,    §175 8-g. 
No  part  of  capital  to  be  loaned  to  officer  or  stockholder,  §  1783-e. 
Officers  or  directors  shall  not  profit  from  investment  of  companies 

funds,  §  13,  Ch.  348,  38th  G.  A.     (Miscl.  Sections).     Page  133. 
Officers  to  assist  in  examination,   §   182 1-b. 
Power   of   directors,    §    1697. 
Power   to   declare   dividends,    §    1702. 
Prorportionate  representation,   §§    1821-v,   1821-w. 
Revocation   of  authority,    §    1755,   appeal,   §    175  6. 


INDEX  22' 


Sale  of  stock  with  policies  prohibited,  Ch.  181,  39th  G.  A.     Page 

109. 
Secretary   and   officers — duty,   §    1698. 

Soliciting  business  after   revocation  of  authority,    §    18  21-f. 
Solicitation   of   proxies,    §§    1821-y,    1821-z. 
State  and  county  miUtuals. 

Bonds — Approval  of — §    10,   Ch.   120,   39th  G.  A.      Page   66. 
Who  deemed  agents,  §   1750. 

Discriniination  and  Robatinj;',  §   1782. 
Penalty,    §    1783. 

Dissolution  of  Companies  and  Associations: 

Assessment,  life,  accident  and  health  associations,  proceedings  to 

control  or  wind  up,   §   1795. 
Fraternals,   §    1839    m-n-o. 
Life  companies,   §§   1777,   1778. 

Failure  to   make  deposit  or  file  statement,   §   1776. 
Other  than  life,   §   1731. 

Mutual   companies,    §    1733. 

Requisition   on   stockholders,    §    1732. 
Provisions  of  general  applicability. 

Refusal  to  be  examined,  §  182 1-g. 
Reciprocals — refusal  or   revocation   of   certificate,    §    10,    Ch.    ISO, 

37th  G.  A.    (Miscl.  Sections).     Page  136. 
State  and  county  mutals,  §   8,  Ch.   120,   39th  G.  A.     Page   65. 

Dividends:      Other  than  life,  §  1702. 

Evidence  of  Value:      Other  than  life,  §   1742. 

State  and  county  mutuals,   §  7,  Ch.  120,  39th  G.  A.     Page  65. 

Examination  of  Companies  and  Associations: 

Assessment,  life,  accident  and  health  association,   §   1790. 

Expenses,   1790. 

Foreign  associations,   §   1794. 
Fraternals. 

All    societies,    §    1839-b. 

Expenses,    §§    1839-b,    1839-e. 

Officers   of  the   society  to  assist,    §    1839-c. 

Foreign   fraternals,    §    182  9. 
General  provisions  relative  to. 

Appointment   of   examiners,    §    1821-c. 

Appointment   of   receiver   following   examination,    §    1821-d. 

Comxpanies  to  assist,  §   1821-b. 

Compensation   of  examiners,   §   1821-c.  , 

Expenses  of  examiners,   §   1821-c. 

Examination    at    least    biennially,   §    1821-a. 

Examination  of  non-resident  companies,   §   1821-h. 

Publication  of  results  of  examination,    §   1821-d. 

Refusal  to  be  examined.   §    1821-g. 

Transfer  of  stock  pending  examination,   §   lS21-e. 
Life  companies  and  associations,  §   1777. 

Consolidation,   §    1821-q. 

Dissolution,   §§   1776,   1777. 

Receiver,   §   1777. 
Other  than  life,  §  1700. 

Consolidations,   §   1821-r. 

Dissolution,  §  1731. 

Expenses,    §   1753. 

Revocation  of  authority,  §  1755. 
Appeal,   §    1756. 
Evidence,  §  1757. 


228  INDEX 


Reciprocals,   §   7,   Ch.   180,   37th  G.   A.      (Miscl.   Sections).     Page 

136. 
State  and  county  mutuals,  §  12,  Cli.  120,  39th  G.  A.  Page  67. 

Exemption  of  Pi'ococmIs  of  Policy  and  Cei-tificate: 

Fraternals,  §  1828. 

Life    and    accident    companies    and    associations,    §    3313.    (Miscl. 
Sections).      Page    140. 

Fees : 

Assessment   life,   accident   and  health  association,   §§   1790,    1794. 

Fraternals,    §    1832. 

Life,  §  1818. 

Other  than  life,  §  1752. 

Paid  to   commissioner,   §   1683-r5. 

Reciprocals,   §   13,   Ch.   18*0,   3  7th   G.  A.      (Miscl.  Sections).      Page 

137. 
State  and  county  mutuals,  Sec.  14,  Ch.  120,  39th  G.  A.     Page  67. 

Fire  Oompanies:    (See  also  other  than  life). 
Additional  riders  permitted,   §    175  8-a. 
Advertisements,    §    174  9. 
Agents'  licensed,   §§   1821-k,    1821-1. 
Annual    report — convention    form,    §    1820d. 
Applicability  of  chapter   8-a,   §    1821-i. 
Application — copy   attached    to    policy,    §    1741. 
Approval  of  Policy  forms,    §    1745. 
Arbitration,    §    17  43. 
Biennial  examination,   §   1821-a. 

Compensation  and  expenses   of  examiners,   §   1821-c. 
Coinsurance,   §   1746. 
Combinations   and   agreements,    §    17  54. 
Consolidation,   §    1821-r-s-t-u. 
Coverage   defined,    Sub-Sec.    1,    §1709. 
Doing  business  without  compliance,   §    174  7. 

Officers  punished,    §    1748. 
Dividends,   §   1702. 
Evidence  of  value,   §   1742. 
Examinations   of   companies,    §§    1700,    1821-a. 

Company  to  assist,    §   1821-b. 

Evidence,    §    1757. 

Expenses,   I   1753. 

Foreign  companies,   §   1753. 

Non-resident    companies,    §    182.1-h. 

Publication   of   results,    §1821-d. 
Fees,  1752. 
Funds   not   to    be    loaned   to    or    invested    on    property   owned    by 

officers,     directors,     or    member    of    immediate    family,    S     13, 

Ch.   348,  38th  G.  A.    (Miscl.   Sections).     Page  133. 
Misleading  statements   §    175  8-f. 

Penalty,    §    1758-g. 
Notice  of   loss,   §    1744. 
Officer    or    director    not    to    profit    from    investment    of   company, 

§  13,  Ch.  348,  38th  G.  A.   (Miscl.  Sections).     Page  133. 
Organization  of  fire  companies   (see  other  than  life  insurance). 
Policy    conditions   and   provisions    generally,    §    1743. 
Policy  miust  appear  in  name  of  issuing  company,  §  1758-e. 
Proof  of  loss,   §§    1742,    1742-a,   1744. 
Proportionate     representation     in     stock     companies,     §§     1821-v, 

1821-w. 
Refusal  to  be  examined,   §   1821-f. 
Reserves,  S  1702. 


INDEX  229 


Revocation  of  authority,   §§   1755,   182 1-d. 

Appeal,  1756. 
Sale  of  stock  and  polices  together  prohibited,  Ch.  181,  3'Jth.  G.  A. 

Page   10  9. 
Soliciting   Agents   defined,   §    1749. 

Soliciting  business  after  revocation  of  authority,   §   182 1-f. 
Standard  Fire  Policy,   <5   175  8-b. 

Violation,    §    1758-e. 
Taxation. 

Domestic  companies,   §   1333-d    (Miscl.  Sections.      Page  145. 

Foreign   companies,    §    1333    (Miscl.    Sections).      Page    14  3. 

Mutuals  5}  20,  Ch.  429,  37th  G.  A.     Page  9. 
Time   for   bringing  action,    §    1744. 
Transfer  of  stock  pending  examination,  §  17  21-e. 
Unauthorized   companies — insurance   in,    §    1758. 
Voting  by  proxies,  §  1821-x-y-z. 
Who  deemed  agents,   §    1750. 
Wilful  burning  of  property. 

Penalty,  §  4784   (Miscl.  Sections).     Page  142. 

Foi-eigli   Campjinies: 

Life  companies. 

Advertisements — who  deemed  agents,   S   1815. 

May  not  advertise  authorized  capital,   §   1783-g. 

Penalty,    §    1783-h. 
Agents  certificate,   §   1800.  ' 

Penalty,    §    1801. 

Recovery,    §    1802. 
Annual  certificates,   §   1775. 
Annual  statement,   §§   1773,   1799. 

Penalty,   §    1801. 

Recovery,    §    1802. 
Application — copy  attached  to  policy,   §   1819. 
Commissioner's  annual  report,   §   17  81. 
Conspiracy  to  defraud,  §  1817. 
Defenses  to  action  on  policies,  §  1811. 
Discrimination  and  rebating,  §   1782. 

Penalty,   §   1783. 
Dissolution,    1^5}    1776,    1777. 
Examination,   §  1777. 
Fees,    §    1818. 

Fraud   in   procuring   insurance,    ij    1816. 
Group  accident  and  health  and  liability  insurance  authorized,  *i 

1783-d. 
Group  life  insurance  authorized.  Ch.  19  7,  3  8th  G.  A.     Page  77. 
Industrial  insurance  authorized,  1783-b. 
Illegal  business,   §   1814. 

Investment  of  capital  and  or  surplus,   «^   1772. 
Limitation  to  action,   §   1820    . 
Medical   examination,   §    1783-b. 
Misrepresentation  of  age,  §   1813. 
Misrepresentations  prohibited,  §  1820-b. 

Penalty,  §  1820-c. 
Physician's   certificate,    §    1812. 
Policies  exempt   from  execution.   §    1805. 
Policy  forms  filed  for  approval,  §  17  83-a. 

Penalty,    §    1783-c. 
Receiver,   §   1777. 

Retaliation — laws   of  other  states,   §    1810. 
Service  of  process,  §§   1808-1809. 


230  INDEX 


Other  than  life  companies. 

Additional   riders   permitted,    §    1758-a. 

Advertisements,    §    1749.  ^         > 

Agent's   certificates,    §    1725. 

Annual  statement,   §   1716. 

Application — copy  attached  to  policy,   §   17  41. 

Arbitration,    §   1743. 

Cancellation  of  policy,  §   172  8. 

Capital  stock,  §  1721. 

Certificate   of   authority,    §    1724. 

Revocation,  §  1735. 
Certificate  of  compliance,   publication,    §    173  7. 
Coinsurance,   §   1746. 
Combinations  and  agreements,    §    1754. 
Conditions  of  authorization,   §§   1722,   1723. 
Doing    business    without    compliance,    §    1747. 

Officers  punished,   §   1748. 
Evidence  of  value,   §   1742. 
Examinations,  1753. 

Evidence,  §  1757. 

Expenses,   §   1753. 

Dissolution,  §  1731. 
False  statement  of  assets,  fire  companies,  §  1738. 

Penalty,    §    1740. 
Fees,   §   1752. 

Forfeiture   of   policy,    §    1727. 
Inquiry  by   commissioner,    §    1718. 
Insurance    notes,    §    1726. 
Misleading   statements,    §    1758-f. 

Penalty,   §   175 8-g.  '    ,     . 

Notice  of  loss,   §    1744. 
Policy,   conditions  and  provisions   generally,   §    174  2. 

Approval  of,  §  1745. 
Policy  must  appear  in  name  of  issuing  company,   §   1758-e. 
Policy  restored — payment  of  sum  due,   §  1730. 
Printed   form' — annual   statement,    §    1719. 
Proof  of  loss,   §§  1742-a,   1742,   1744. 
Requisition   on    stockholders,    §    1732. 
Resident   agent — foreign   fire   companies,    §    17  39. 

Penalty,   §   1740. 
Retaliation — laws  of  other  states,   §   173  6. 
Revocation  of  authority,   §   175  5. 

Appeal,  175  6. 
Service  of  process,   §   1722. 
Short  rate  table,  §  172  9. 
Soliciting  agent  defined,   §   1749. 
Standard  fire  policy,   §§   1758-b,   1758-c. 
Statement  of   capital   and   surplus. 

Foreign   fire    companies,    §    1739. 
Penalty,   §   1740. 
Time  for  bringing  action,  §   1744. 
Transfer  of  stock  pending  investigation,   §   17  34. 
Unauthorized    companies — insurance   in,    §    175  8. 
Who   deemed  agent,   §    1750. 
Provisions  of  general  applicability. 
Agents  licensed,   §§   1821-k,   1821-1. 
Annual   report — convention   form,   §    1820-d. 
Applicability  of  chapter  8-a,  §1821-i. 
Compensation   and   expenses  of  examiners,   §1821-c. 
Consolidations,    §    1821-n-o-p-q-r-s-t-u. 
Examinations,  §   1821-h. 


INDEX  231 


Guarantee  companies — release  from  liability  as  surety,  *^  361 
(Miscl.  Sections).      Page   139. 

Publication  of  results  of  examination,   §   182 1-d. 

Refusal  to  be  examined,   §   182 1-g. 

Revocation  of  certificate,   §   1821-d. 

Sale  of  stock  with  policies,  prohibited,  Ch.  181,  39th  G.  A.  Page 
109. 

Service  of  notice  on  agent,   3530    (Miscl.  Sections).     Page   142. 

Soliciting  business  after   revocation  of  authority,   S    1821-s. 

Suit  on  bond  of  guarantee  company,  §  362  (Miscl.  Sections). 
Page   139. 

Taxation,   §   1333    (Miscl.  Sections).     Page   143. 

When  guarantee  company  may  be  accepted  as  surety — condi- 
tions,   §    3  60    (Miscl.   Sections).      Page   13  8. 

Where  suit  may  be  brought,  §  3499  (Miscl.  Sections).  Page 
141. 

1^^'aternals,  Beneficiary  Societies,  Order.s  oi*  Asso<iations: 

Acquisition  of  real  estate — conditions,  §  18  39-k. 

Agents,   §   1833. 

Annual  certificate,  §  1832. 

Conditions   precedent   to   Issuance — renewal,    §    1832. 
Annual    report,    §    1830. 

Application — copy  to  be  attached  to  certificate,  §  1826. 
Appointment  of  receiver  upon  application  of  the  attorney-general 

only,  §  183  9-m. 
Approval  of  articles  and  by-laws  by  the  commissioner,  §   1832. 
Assessments,  §   1823. 
"Association"  defined,  §  1839-a. 
Changing  beneficiary,   §   1824. 
Children — death  or  annuity  benefits  on  live  of  children,  §  1822. 

Conditions  precedent  to  issuance  of  policy,   ibid. 

Lapse  of  parents'  certificate  of  membership,  ibid. 

Reserves,   ibid. 

Separate  report  annually  to  the  commissioner  on  this  particular 
business,   ibid. 

Specified  payment,   ibid. 
Commissioner  empowered   to   make   additional   inquiries,    §    1830. 
Conditions   particularly   applicable   to   foreign   societies,    §1829. 

Must  file  charter,  articles,  by-laws  with  commissioner  of  in- 
surance, ibid. 

Must  submit  to  examination  by  commissioner,  ibid. 

Must  appoint  attorney  for  service  of  process,  ibid. 
Defined,   §   1822. 

Examination   by  commissioner,   §§    1839-b,    1839-c. 
Examination  of  society  pending  receivership,  §  1839-m. 
Examination  report  not  public  until  after  a  hearing,  §   1839-0. 
Exemption  of  proceeds  of  certificate,  §  1828. 

Exemption  from  law  relative  to  life  insurance  companies,  §  1825. 
Expenses  of  examination,  §   1839-e. 
False  representations  by  officers  or  agents,   §   1838. 
Fees,  §  1832. 

General  provisions  relating  to,  §  1822. 
Illegal  business — agents  and  officers,   §   1837. 
Insurable   age,    §    1824. 
Investment  of   funds,    §   1839-1. 
Meetings  may  be  held  in  other  states,  §  1835. 
Membership  may  be  confined  to  one  occupation  or  guild,  §  182  2. 
Mortuary  assessment  rates  and   mortality  table,   §    1839-j. 
Plan  of  consolidation  or  reinsurance — approval  by  commissioner, 

§   1839-g. 


232  INDEX 


Expenses,  §  1839-h. 

Penalty,   §   1839-i. 
Policy  must  be  based  on  medical  examination,  §   1839. 
Proceedings   for  violation   of  statute,    S    18  36. 
Religious  societies  may  comply   with   chapter   9,   §   1822-a. 
Securities  deposited,  §  1839-1. 
Service  of  process,  §§  1829,  1831. 
Soliciting  new  business  after  revocation   of  authority,   Penalty,    § 

1839-f. 
Suit  or  actions — where  suable,   §   1827. 
Suspension   or   revocation   of  authority,    §    183  9-b. 

Taxation. 

Exemption  of  foreign  societies,  §  1333    (Miscl.  Sections).     Page 

143. 
Exemption    of   domestic    societies,    §    13  33-d    (Miscl.    Sections). 

Page   145. 
ExemJ)tion  of  accumiulations  and  funds  held  for  paying  benefits, 
§    1304    (Miscl.   Sections).      Page   139. 
Term,    whole   life    or    limited    payment    plan    policies — conditions, 

§   1822. 
Transformation    to    legal    reserve    level    premium    companies.    Ch. 

302,   38th  G.  A.      Page  130. 
Valuation  of  policies,   §   1839-j. 
Who  may  be  beneficiary,  §  1824. 

Funds  of  Companies  and  Associations: 

Assessment  life,    accident  and   health   associations,    §§    1781-1793. 
Fraternals. 

Acquisition  of  real  estate,  §  183 9-k. 

Investment  of  funds,  §  1839-1. 
General  provisions. 

Not  to  be  invested  in  or  loaned  on  property  of  officer  or  direc- 
tor or  member  of  family,  5^  13,  Ch.  3  4  8,  3  8th  G.  A.     Page  133. 

Officer  or  director  not  to  profit  from  the  investment  of,   §   13, 
'Ch.    348,   38th  G.  A.    (Miscl.   Sections).      Page   133. 
Life. 

Investment  of,  §  1806. 

Investment  of  capital  stock,  §  1769. 

Investment   of  reserves — mutual   companies,   §    177  0. 

Investment    of    surplus    and    or    capital — foreign    companies,    § 

1772. 

Land  and  building,  §   1807. 

Officers  and  stockholders  shall  not  borrow  from  capital,  §  176  9. 

Real  estate,  §  1803 

When   to   be   sold,    §    1804. 
Other  than  life. 

Investment  of,    §    169  9. 

Real  estate,  §  1703. 
State  and  county  mutuals,  §  4,  Ch.  120,  39th  G.  A.     Page  63. 

Gi-oup   Accident   and   Health   Insurance:      Life   companies    may   write, 

§  1783-d. 

Gi'oup  Life  Insurance:      Ch.  197,  3  8th  G.  A.     Page  77. 

Guarantee    Ck)mpanies:       (For    general    provisions    of    law    applicable, 

see  title  other  than  life,) 
Bond  to  be  approved  by  the  court.  §  360   (Miscl.  Sections).     Page 

138. 
Certificate   of    commissioner   sufficient    evidence    for    approval    of 

bond.  ibid.     Page  138. 


INDEX  9.^: 


Maximum  risk  authorized,  §  360    (Miscl,  Sections).     Page  138      § 

1710. 
Only  stock  companies  may  engage  in  fidelity  and  surety  business, 

sub-section    2,    §    1709. 
Release   from   liability  as  surety,    ;^    ;;61    (Miscl.   Sections).      Page 

139. 
Service  of  notice  of  suit  on  agent,  5^  3  5  30   (Miscl.  Sections).     Page 

142. 
Suit  on  bond  of  company — notice,   ij   362     (Miscl.  Sections).  Page 

139. 
When  company  may  be  accepted  as  surety,  §  36  0   (Miscl.  Sections). 

Page   13  8. 
Where   action   may  be   brought,    §    34  99    (Miscl.   Sections).      Page 

141. 
When  notice  may  be  served  on  commissioner  of  insurance,   §   3  62 

(Miscl.  Sections).     Page  139. 

Hoii's  or  I.cs'al  Heirs:      Distribution  of  insurance  when  death,  or  disa- 
bility  caused   by   beneficiary,    S    3  386    (Miscl.   Sections).      Page 
141. 
"Heirs"   or    "Legal    Heirs"   include   surviving   spouse    in    life    and 
fraternal  insurance,   §   3313    (Miscl.   Sections).     Page   142. 

Industrial  Insurance:      Life  companies,  §   1783-b. 

Insurance  authoi'ized : 

Assessment,  life,  accident  and  health  insurance,   $}   1784. 
Fraternal  insurance,   §   1822. 
Life  insurance,   §   1768. 

Group,   accident  and  health   and  liability  insurance,   §    17S3-d. 
Group   life  insurance,   Ch.    197,   38th  G.  A.      Page   77. 
Industrial   insurance,    §    1783-b. 
Maximum  risks,  mutual  other  than  life  companies,  §  1692. 
Maximum  risks,  stock  other  than  life  companies,  S  1710. 
Other  than  life,  §  1709. 

Cyclone,   fire,    hail   for   growing   crops,   lightning,   loss  of   rents, 
plate  glass,  sprinkler  leakage,  tornado,  use  of  buildings,  sub- 
section 1. 
Check  alteration,  fidelity,  surety,  sub-section  2. 
Safe  deposits,  safe-keeping  of  personal  property,  sub-section  3. 
Live   stock    and   veterinary   services,   sub-section    4. 
Accident   and    health,    automobile   liability,   employers    liability, 
general  liability,  malpractice — physicians  and  dentists,  prop- 
erty   damage — sprinkler    leakage,    workmen's    compensation, 
sub-section  5. 
Steam    boiler — personal    injury   and   property   damage,   sub-sec- 
tion  6. 
Burglary,  robbery  and  theft,  sub-section  7. 
Credit  insurance,  sub-section   8. 
Automobile  and  marine,  sub-section  9. 

(For  combinations  of  other  than  life  coverage  permitted,  see  § 
1710). 
Reciprocal   or    inter-insurance,    Ch.    180,    37th    G.    A.    (Miscl.   Sec- 
tions).     Page    133. 
State  and  county  mutuals,  §   1.  Ch.  120,  39th  G.  A.  Page  62. 

Insurance  Department:       (See   comjmissioner  of   insurance.) 
Additional  clerks  and  assistants,   1683-r2. 
Creation  of,   chief  officers,   §    1683-r. 
Office  supplies  and  equipment,  §   1683-rl. 

Insurance  Notes:     Other  than  life  insurance,  §  1726. 


234  INDEX 


Inter-Insurance  Exchanges:    (See  reciprocals). 

Judgment   Ci-editor  Clause:      Automobile   liability   insurance,    sub-div. 

E.,  sub-section  5,  §  1709. 
Physicians,  surgeons,  and  dentists  insurance,  Cli.   2  86,   38   G.  A.; 
Page   59;   sub-section   5,    §    1709. 

Kinds  of  Insurance:      (See  insurance  authorized). 

Assessment,  life,  accident  and  health  insurance,   §  17  84. 

Life  insurance,  §   17  68. 

Group  accident  and  health  and  liability  insurance,  §  17  83-d. 
Group  life  insurance,  Ch.  197,   38th  G.  A.     Page  77. 
Industrial  insurance,   §   1783-b. 

Other  than  life — coverage  specified,  §   1709. 

Fraternals,    §   1822. 

Reciprocal   or   inter-insurance,   Ch.    180,    3  7th   G.   A,    (Miscl.    Sec- 
tions).    Page  133. 

State  and  county  mutuals,  §  1,  Ch.  120,  39th  G.  A.     Page  62. 

liaws  of  Other  States:       (See  retaliation). 

Liability  Insurance:       (See  other   than   life,    mutual   companies,   stock 
companies) . 
Judgment     creditor     clause — liability     insurance,     sub-section     5, 
§  1709. 

Life  Insurance  Companies: 

Accident  and  health  and  liability — separate  department,  §  1783-d. 
Advertisements — who  deemed  agent,  §  1815. 

Authorized   capital   not   to   be   advertised,    §    1783-g. 

Penalty,   §   17  83-h. 
Agent's  certificates,  §§   1800,  1821-k,  1821-1. 

Penalty  §§  1801,  1802. 
Amortization   of   securities,   Ch.    198,    39th    G.   A.     Page    SO. 
Annual  certificate,   §  1775. 

Revocation,  §  1821-d. 
Annual  report,  convention  formj,  §  1820-d. 
Annual  statement,   §§   1773,   1799. 

Failure  to  deposit  or  file  statement. 
Penalty,    §§    1776,    1801,   1802. 
Applicability  of  chapter  8-a,  §  1821-i. 
Application — Copy  attached  to  policy,  §  1819. 
Approval   of  Articles   and   Amendments,    §    1768. 
Approval  of  Policy  forms,  §  17  83-a. 
Change  in  Securities,  §  1779. 
Comimissioner's  Annual  Report,   §   1781. 
Conditions  precedent  to  incorporation,  §   17  68. 
Consolidation,    §    1821-n-o-p-q. 

With  unauthorized  companies  prohibited,  §  1821-s. 

Penalty,  §  1821-u. 

Expense  of  Consolidation  proceedings,  §  1821-p. 
Conspiracy  to  defraud,    §   1817. 
Defenses  to  action   on   policies,    §    1811. 
Disbursements, — domestic   companies,    §    1820-a. 
Discriminating  rebating,  §   17  82. 

Penalty,    1783. 
Dissolution,    §§    1776,    1777. 
Distribution — Where    death    or    disability    caused    by    beneficiary 

§   3386    (Miscl.  Sections).     Page  141. 
Examinations,   §§    1777   and    1821-a. 

Companies  to  assist,  §  1821-b. 

Compensation   and   expenses  of  examiners,    §   1821-c. 


INDEX  2*^5 


Non-Resident  companies,  §  1821-h. 

Publication   of   results,    §    1821-d. 

Refusal   to   be   examined.    *5    182 1-g. 
Fees,  §  1818. 

Fraud  in  procuring  insurance,   §   1816. 
Funds — Not  to  be  invested  for  profit  of  officers  or  directors,  §  13, 

Ch.   348,   38th  G.  A.    (Miscl.  Sections).      Page  133. 
Group  Accident  and  Health  Insurance  authorized,   §  1783-d. 
Group  Life  Insurance  Authorized,  Ch.    197,   38th  G.  A.     Page   77. 
Illegal  Business,  §  1814. 
Industrial  Insurance  Authorized,  §   17  83-b. 
Interest  collected,  §  1780. 
Investment  of  Funds,  §   180  6. 

Land  and  Buildings,   §  1807. 

Real   Estate,    §§    1803,    1806. 
When  to  be  sold,   §   1804. 
Limitation   of  actions,   §    1820. 
Medical  Examination,  §  1783-b. 

Misrepresentation  of  Age,  §  1813.  * 

Misrepresentations  prohibited,  §  1820-b. 

Penalty,    §    1820-c. 
Officers   and    Directors   shall   not   profit    from    investments,    §    13, 

Ch.   348.    38th   G.   A.    (Miscl.   Sections).      Page  133. 
Organization   of   Domestic    Companies — Supervision   by    Insurance 

Department,  Ch.  224,   39th  G.  A.     Page  2. 

Penalty  for  violation  of  law,  ibid.      Promotion  expense,  ibid. 
Penalty  for  failure  to  file  policy,  §   17  83-c. 
Physicians'  Certificate,  §  1812. 
Policies   exempt   from   execution,    §    1805. 

Power  to  hold  funds  in  trust,  Ch.   3  04,  38th  G.  A.     Page  79. 
Proceeds  of  life  insurance — Distribution,  §    3313   (Miscl.  Sections). 

Page  140. 
Proportionate    representation — Stock    Companies,    §    1821-v-w. 
Receiver   §    1777. 

Retaliation — Laws    of    other    states,    §    1810. 
Sale  of  stock  with  policies  of  insurance  prohibited.  Ch.  181,   39th 

G.  A.      Page  109. 
Securities  of  defaulting  or  insolvent  company,   §   1778. 
Service  of  notice  on  agent,   §   3530    (Miscl.  Sections).     Page   142. 
Service  of  process,  §§   1808,   1809. 

Soliciting  business  after  revocation  of  authority,  §   1821-s. 
Taxation — Domestic  companies,  §  1333-d   (Miscl.  Sections).     Page 

145. 

Foreign   §   1333    (Miscl.  Sections).     Page  143. 
Terniis    "Heirs"    and    "Legal    Heirs"    includes    surviving    spouse, 

§   3313    (Miscl.  Sections).     Page  140. 
Transfer  of  Stock  Pending  examination,  §  1821-e. 
Valuation  of  Policies — Deposit,  §  1774. 
Voting  by  Proxies,  §  1821-x-y-z. 
Where  action  may  be  brought,  §  3499  (Miscl.  Sections).  Page  141. 

Marine  Insurance:       (See   Other  Than   Life   and    Fire   Insurance). 
Authorized  Sub-section  9,  §  1709. 

Fraudulent  destruction  of  boats, — penalty,   §  5054    (Miscl.  Sees.). 
Page  142. 

Fitting  out  for   that   purpose,   §    5055    (Miscl.   Sections).     Page 
142. 
Making  false  affidavits  or  protest,  §  505  7   (Miscl.  Sections).     Page 

143. 
Making  false  bills  of  lading,  §  5056   (Miscl.  Sections).     Page  143. 


236  INDEX 

Mutual  Ooinpanies:       (See  Also   State  and  County  Mutuals). 
Life   Companies. 

Advertisements — Who  deemed  Agent,   §   1815. 
Agents'  licenses,  §  1800. 

Penalty,   §§   1801,  1802. 
Amortization  of  securities,  Ch.  19  8,  39th  G.  A.     Page  80. 
Annual  certificate,   §   1775. 
Annual  report — Convention  form,  §   182  0-d. 
Annual  report — Convention  form,  1820-d. 
Annual  statement,   §§   1773,   1799. 

Penalty,  §§  1801,  1802. 
Approval  of  Articles   and  Amendments,   §    ]768. 
Approval  of   Policy  forms,   §   17  8  3-a. 

Accident  and  health  and  liability — Must  maintain  separate  de- 
partments,  §  1783-d. 
Application — copy  attached  to  policy,  §  1819. 
Certificates  of  authority  §  1770. 
Change  in  securities,  §  1779. 
Commissioner's  annual  report,   §   1781. 
Conditions   precedent   to   doing  business,   §    1770. 
Conditions  precedent  to  incorporations,   §    1768. 
Consolidation,   §   1821-n-o-p-q-s-t-u. 
Conspiracy  to  defraud,   §    1870. 
Defenses  to  action  on  policies,  §  1811. 
Disbursements — domestic  companies,  §  1820a. 
Discrimination   and  rebating,   §   1782. 

Penalty,   §   1783. 
Dissolution,  §§  1776  and  1777. 
Examination,    §    17  77. 

Failure  to  Deposit  or  file  statement,  §   17  76. 
Fees,  §   1818. 

Fraud  in  procuring  insurance,   §   1816. 
Group  accident  and  health  insurance  authorized,   17  83-d. 
Group  life   insurance  authorized — conditions,   Ch.   19  7,   38tli   G. 

A.      Page  7  7. 
Illegal  business,  §  1814. 

Industrial   insurance   authorized,    §    17  83-b. 
Interest  collected,   §   1780. 
Investment  of  funds,  §  1806. 

Capital  and  surplus — foreign  companies,  §   17  72. 

Land  and  buildings,   §   1807. 

Real  estate,  §§  1803  and  1806. 

When   to   be   sold,    §    1804. 

Reserves,    §    1770, 
Limitation   of  actions,   §   1820. 
Medical  examinations,  §  17  83-b. 
Misrepresentation  of  age,  §  1813. 
Misrepresentations   prohibited,    S    1820-b. 

Penalty,    §    1820-c. 
Physicians'  certificate,  §  1812. 
Policies  exempt  from  execution,  §  1805. 

Power  to  hold  funds  in  trust,  Ch.  304,  38th  G.  A.     Page  79. 
Receiver,  §   1777. 

Retaliation — Laws  of  other  states,   §   1810. 
Securities  of   defaulting  or   insolvent   companies,   §    1778. 
Service  of  Process,  §§  1808,  1809. 
Valuation   of   policies — deposits,    §    1774. 
Other  Than  Life  Companies. 

Additional  riders  permitted,  §  17  5  8-a. 

Advancement  of  funds — conditions,   Sec.   8,   Ch.   429,   37   G.   A. 

Page    8. 


INDEX  2:n 

Advertisements,  §  1749. 
Agent's   certificate,    §    1745. 

Resident  Agent,  foreign  fire  company,  §  1739. 
Penalty.   S   1740. 

Soliciting   Agent    defined.    S    1749. 

Who  deemed  agent,  §   1750. 
Annual  meeting,  §  169  6. 
Annual  statement,  §  1714. 

Printed    form,    1719. 
Applications — copy  attached  to  policy,   §   1741. 
Approval  of  policy  forms,  §  1745. 
Arbitration,  §  1743. 

Assessments   to   provide   for   deficiency,   §   7,  Ch.   429,    37  G.  A. 

Page  8. 
Cancellation  of  Policy,  §   172  8. 
Certificate   of   Authority — Foreign    companies,    §    1724. 

Revocation  of,     1735. 
Certificates   of    Compliance — Publication,    §    1737. 
Coinsurance,  §  1746. 

Combinations   and    Agreements,    §    175  4. 

Conditions  of  authorization — Foreign  Mutual  Companies,  §  1723. 
Corporations  may  be  members  of  Mutuals,  §  1693. 
Dissolution — After    exam-ination,    §§    1731,    1733. 
Doing  business  without  comipliance,   §  1747. 

Officers  punished,  §  1748. 
Dividends,   §    1702. 
Election  of  Directors,   §    1696. 
Evidence    of    loss,    §    1742. 
Examinations,    §§    1700,    1821-a. 
Evidence,  §  1757. 
Expenses  of  examination,  §  1753. 
Foreign  companies,  §   1753. 
False  statement  of  assets — Foreign  Fire  companies,  §  1739. 

Penalty,  §  1740. 
Fees,    §    1752. 

Forfeiture  of  policy,   §   1757. 
Inquiry  by  the  commissioner,  §  1718. 

Insurance  authorized,   §   1709.      (See  insurance  authorized). 
Insurance  notes,  §  1726. 
Investment   of   funds,    §    1699. 

Real    estate,    §    1703. 
Kinds  of  risks — combinations  permitted,  §  1710. 
.Maximum     premiums  —  mutual     companies,     S      5,     Ch.      129, 

37  G.  A.     Page  8. 
Maximum   risks,   §    1692. 
Misleading  statements,   §   1758-f.  ' 

Penalty,  §   175 8-g. 
Notice  of  loss,   §   1744. 
Organization — conditions,    §     li6  92. 
Physicians,    dentists,    surgeons,    druggists   and    graduate   nurses 

mutual  companies,   Ch.   286,    38    G.  A.      Page   59. 
Policy  conditions  or  provisions  generally,  §  1743. 
Policy  form,  5^   1689,  S   10,  Ch.   429,  37  G.   A.      Page  9.  §   1712. 
Policy  must  appear  in  name  of  issuing  company,  Jj   175  8-e. 
Policy    restored — payment    of    sum    due,    §    173  0. 
Proof  of  loss,  §§   1742,   1742-a,   1744. 
Reinsurance,    §    1711. 
Reserves,    §    1702. 

Retaliation — laws  of  other  states,  §  1736. 
Revocation    of    authority,    §    1755. 
Appeal,    §   1756. 
16 


238  INDEX 


Short  rate  table,  §  172  9. 

Solicitation    of   applications,    §    169  4. 

Standard  fire  policy,  §  1758-b-c. 

Surplus    of    foreign    mutual    companies,    §    1723. 

Time  for  bringing  action,  §  1744. 

Voting  power — mutual   companies,    Sec.    4,    Ch.    42  9,    37    G.   A. 

Page   8. 
Provisions  of  general  applicability. 
Agents'    license,   §    1821-k-l. 
Applicability  of  Chapter  8 A,  §  1821-i. 
Biennial  examinations,  §  1821-a. 

Companies  to  assist,   §   1821-d- 

Compensation   and  expenses  of  examiners,    §   1821-c. 

Publication  of  results,  §  1821-d. 

Non-resident   com'panies,    §    1821-h. 
Funds  not  to   be  loaned   for  profit  of  officers  or   directors.      § 

13,   Ch.   348,   38th  G.  A.    (Miscl.   Sections).      Page  133. 
Refusal  to  be  examined,  §  1821-g. 
Revocation  of  certificate,  §  1821-d. 

Service  of  notice  on  agent,  §  3530   (Miscl.  Sections).     Page  142. 
Soliciting  business  after   revocation   of  authority,   §    1821-f. 
Taxation, — foreign    §    1333,     (Miscl.    Sections).      Page    143. 

Domestic,  §  1333-d   (Miscl.  Sections).     Page  145. 

Mutual    fire    and    casualty    companies,    §    20,    Ch.    429,    37th 

G.    A.    Page    9. 
Voting  by  proxies,  §  1821-x-y-z. 
Where  action  may  be  brought,  §  3499    (Miscl.  Sections).     Page 

141. 

Name   of  Company: 

Assessment  life,   accident  and  health  companies,    §   1786. 

Other   than   life  companies,    §   1687. 

State  and  county  mutuals,  §  2,'Ch.  120,  39th  G.  A.     Page  62. 

Xotice  of  lioss: 

Life    companies — accident    and    health    and    disability    insurance, 

§    1820. 
Other  than  life  companies,  §  17  44. 
State  and  county  mutuals,  §  6,  Ch.  120,  39th  G.  A.     Page  64. 

Officers:       (See   directors   and  officers). 

Otlier  Than  Life  Insurance  Companies: 

Additional   riders  permitted,    §    1758-a. 
Advertisements,  §   1749. 

Authorized  capital  prohibited,  §  1783-g. 

Penalty,   §   1783-h. 
Agent   must   have   certificate,    §§    1725,    1821-k,    1821-1. 

Resident  agent — foreign  fire  companies,  §  1739,  penalty,  §  1740. 

Soliciting  agent  defined,   §   17  4  9. 

Who  deemed  agents,   §   1750. 
Annual  meeting,  §  1696. 

Annual  report,  of  commissioner  of  insurance,   §   1820-a. 
Annual   statement,    §    1714. 

Convention    form,    §    182  0-d. 
Application — copy  to  be  attached  to  policy,  §  17  41. 
Applicability  of  chapter  8A,  §  1821-i. 
Arbitration,    §   1743. 
Articles   of   incorporation — approval   by   commissioner,    §    16  85. 

Recording,    §§    1686,    1688. 
Cancellation  of  policy,   §  1728. 
Capital  stock,    §§   1691,    1783-e, — foreign   companies,    §    1721. 

Not  to  be  loaned  to  officers  or  stockholders,  §  1783-e. 


INDEX  239 


Certificate   of  authority, — conditions — expiration,   §    1700. 
F'oreign  companies,   §   172  4. 
Refused,   §   1715. 

Revocation — foreign   companies,    §    1735. 
Certificate   of   compliance,   publication,   §    173  7. 
Co-insurance,   §   17  46. 
Combinations  and  agreements,   §   1754. 

Conditions  of  authorization — foreign  companies,   §8   1722,   1723. 
Consolidation,  §  1821-r-s-t-u. 
Doing   business   without   compliance,    §    17  4  7. 

Officers   punished,   §    1748. 
Dissolution — after  examination,   §   1731. 

Mutual  companies,  §  1733. 
Directors — election   of,    §    1696. 
Dividends,    §    1702. 
Evidence  of  value,  §  1742. 
Examinations,  §§  1700,  1821-a. 
Companies  to   assist,   §    1821-b. 

Compensation  and  expenses  of  examiners,   §    1821-c. 
Evidence,    §    1757. 
Expenses,    §    1753. 
Foreign   companies,   §    1753. 
Non-resident  companies,    §    1828-h. 
Refusal  to  be  examined,  §  182 1-g. 
Publication  of  results,  §  1821-d. 
False  statement  of  assets — fire  companies,  §  17  38,  penalty,  §  1740. 
Fees,  §   1752. 

Forfeiture  of  policy,  §  1727. 
Funds  not  to  be  invested  for  profit  of  officers  or  directors,  §   13, 

Ch.  348,  38th  G.  A.    (Miscl.  Sections).     Page  133. 
Group  accident   and   health   insurance   authorized,    ^    1783-d. 
Incorporation   of   companies,   §    16  84. 
Increase  in  capital,  §   1701. 

Must  be  fully  paid  up,   §   1783-e. 
Inquiry  by  the  commissioner,  §  1718. 
^risurance  notes,  §   1726. 
Investment    of    funds,    §    169  9. 

Real  state,  §  1703. 
Kinds  of  insurance — coverage  specified,   §   1709. 
Combinations  of  coverage  permitted,   *i   1710. 
Life    insurance    companies    may    write    accident    and    health    and 
liability    insurance,    §    1783-d. 
Separate  department,  §1783-d. 
Management    of   companies — directors,    §    1695. 
Misleading  statements,  §  1758-f,  penalty,  §  1758-g. 
Mutual    companies,    (see    mutual    coml)anies). 
Name  of  companies,  §  1687. 
Notice  of  loss,  §  1744. 
Officers  or  directors  not  to   profit   from  investments  of   company. 

§   13,  Ch.   348,   38th  G.  A.    (Miscl.   Sections).      Page   133. 
Organization    of    domestic    companies, — supervision    by    insurance 

department,   Ch.   224,   39th  G.  A.    Page  2. 
Physicians,    druggists,    dentists   and    graduate    nurses   mutual    in- 
surance companies,  Ch.  286,  38th  G.  A.     Page  59. 
Policy   conditions   are   provisions   generallv,    >$    174  3. 
Policy  form,   §§    1689,    1712. 

Approval   of,    §    1745. 
Policy  must  appear  in  name  of  issuing  company,   §   175  8-e. 
Policy  restored — payment  of  sum  due,   §   1730. 
Printed  form — annual  statement,   §   1719. 
Proof  of  loss,    §§    1742,    1742-a,    1744. 


240  INDEX 


Promotion    expense,    domestic    companies,    Ch.    224,    39th    G.    A. 

Page   2. 

Penalty   for   violation   of   law,   ibid. 
Proportionate   representation   stock   companies,    §    1821-v-w. 
Proxies — voting  by,   §   1821-x-y-z. 
Reinsurance,    §    1711. 
Requisition  on   stockholders,    §    1732. 
Reserves,  §  1702. 

Retaliation — laws  of  other  states,   §  1736. 
Revocation  of  certificate,   §   1721-d. 

Revocation   of   authority,    §§    1755,    1756. 
Sale  of  stock  with  policies  prohibited,  Ch.   181,  39th  G.  A,     Page 

109. 
Service  of  notice  on  agent,  §   3530    (Miscl.  Sections).     Page  142. 
Service  of  process,  §   17  22. 

Soliciting  business  after  revocation  of  authority,   §   1821-f. 
Solicitation    of   application,    1694. 
Standard  fire  policy,   §   1758-b. 
Statement  of  capital  and  surplus — foreign  fire  company,   §   1739. 

Penalty,   §   1740. 
State  and  county  mutuals   (See  state  and  county  mutuals). 
Subscriptions   to  stock-conditions  precedent,   §    1694. 
Stock    or    mutual    comtpany. 

Cannot  operate  on  both  plans,  §  1690. 

Must  indicate  kind  of  company  on  policy  form,   §   1689. 
Surplus,  §   1783-e. 

Foreign  mutual  companies,  §  17  23. 
Suit   on   bond  of  guarantee  company — notice,   §    362    (Miscl.   Sec- 
tions).     Page   139. 
Taxation. 

Domestic  companies,  §   1333-d    (Miscl.  Sections).     Page   145. 

Foreign   companies,  §   1333    (Miscl.   Sections). 

Mutual  fire  and  casualty  companies,  §   20,  Ch.  429,   37th  G.  A. 
Page  9. 
Time  for  bringing  actions,  §   1744. 
Transfer  of  stock,  §   1713.  ^ 

Pending  examination,  §  1821-e. 

Pending  investigation,  §  173  4. 
Unauthorized   companies — insurance   in,    §    1758. 
Waiver  in  interest  of  insured,   §   1758-d. 
When  guarantee  company  may  be  accepted  as  surety,  §  3  60   (Miscl. 

Sections).      Page   138. 

Release  from  liability  as  surety,  §  361   (Miscl.  Sections).     Page 
139. 
Where  action  may  be  brought,  §  3499   (Miscl.  Sections).  Page  141. 

Physicians,  Diniggists,  Dentists  and  Graduate  Nurses  Insurance:      Au- 
thorized, sub-section  5,  §   1709. 
Mutual    insurance    companies    authorized,    Ch.    286,    38th    G.    A. 
Page   59. 

Policy  Foi'ms: 

Assessment  life,  accident  and  health  companies. 

Application,    §    1819. 

Approval  of  policy  by  commissioner,  §   1787, 

Certificate  of  membership  is  policy,  §  1785. 
Fraternal  societies. 

Application,    §    1826. 

May  issue   term,   whole   life  or   limited  payment  plan  policy,    § 
1822. 


INDEX  241 


Life   companies. 

Application,    §    1819. 

Approval  by  the  commissioner,   §   17S3-a. 

Failure  to  file  policy— penalty,   S   1783-c. 

Group  life  insurance  policies,  Ch.   197,  38th  G.  A.      Page  77. 

Limitation  of  actions,  §  1820. 

Medical  examinations,   §1783-b. 

Misrepresentation  of  age,  §  1813. 

Physician's  certificate,   §    1812. 
Other  than   life. 

Additional  riders  and  clauses  permitted,   §   iTHS-a. 

Application — copy  to   be  attached   to   policy,    §   1741. 

Approval   by   coniimissioner,    §    17  4"). 

Arbitration,   §    1743. 

Cancellation   of,   §    1728. 

Coinsurance    clause,    §    174  6. 

Conditions  and  provisions  generally,   §   1743. 

Evidence   of  value   under,    ^    1742. 

Forfeiture  of,  §  172  7. 

Mutual  policies  to  conform  with  provisions  effecting  stock  com- 
panies,  §   10,  Ch.   429,   37th  G.  A.      Page   9. 

Must  appear   in  name  of  issuing  company,   §   1758-e. 

Must  indicate  on  first  page,  whether  stock  or  mutual  companies, 
§  1689. 

Notice  of  loss,  §  17  44. 

Policy  restored — payment  of  sum  due,  §  1730. 

Proof   of   loss   under,    §§    1742,    1742-a,    1744. 

Seal  and  countersignature  by   officers,   S   1712. 

Soliciting   agents  of   foreign   fire   company   must   be   resident,    § 
1739. 
Penalty,   §   1740. 

Standard  fire  policy,   §   1758-b. 

Violation   of   provisions,    $    1768-c. 

Time   for   bringing   action,    S    1744. 

Waiver  in   interest  of  insured,   §   1758-b. 
Reciprocals,    §    14,   Ch.   180,    37th  G.   A.    (Miscl.   Sections).      Page 

138. 
State  and  county  mutuals,   §   1,  Ch.  120,   39th  G.  A.     Page  62. 

Approval  by  the  commissioner,  §  3.     Page  62. 

Cancellation   of,    §    9.      Page    65. 

Notice  of  loss,    §    6.      Page   64. 

Proof  of  loss,   §   6.     Page   64. 

Time  for  bringing  suit,   §  6.     Page  64. 

Powei'  of  Attorney: 

Assessment  life,  accident  and  health  companies,  S  1798. 

Foreign  companies  other  than  life,  S   1722. 

Fraternal   societies,    §    1831. 

Guarantee  companies,   S  362    (Miscl.  Sections).      Page  139. 

Life    insurance    companies,    Si^    1808,    1809. 

Reciprocals,  §  4,  Ch.  180,  37th  G.  A.  (Miscl.  Sections).     Page  134. 

Premiiuns  aiid  assessments: 

Assessment    life,    accident    and    health    associations — assessments, 

8    1788. 

Articles  of  incorporation  and  by-laws  and  notice  of  assessment 
to  state  purpose  of  assessment,  §   1788. 

Foreign  associations,   §   1794. 

When  commencing  business,  §  1787. 
Fraternal  societies — assessments,  §   1823. 

Mortuary  assessment  rates,  §   1839-j. 


242  INDEX 


Life  companies. 

Mis-statement  of  age — premium  purchases  in  correct  amount,  § 

1813. 
On  level  premium  plan,  §  17  68. 

Mutual  companies,  §   1770. 
Recovery  of  premium — insolvent  company,  §  1814. 

Other  than  life  insurance  companies. 
Mutual  companies,  §   1692. 

Assessments,  §   7,  Ch.  429,  37th  G.  A. 

Collect  cash   premium  when   organizing,    §    1692. 

Foreign    companies — level    premiums    and    assessments,    § 
1723. 

Maximum  premiums,  §  5,  Ch.  429,  37th  G.  A.     Page  8. 

Unearned  premiums,   §    6,   ibid.     Page   8. 
Non-payment  of  premium — forfeiture,   §    172  7. 

Policy  restored — payment  of  premium,  §  1730. 
Return  of  unearned  premium^ — cancellation,  §   1728. 

Short  rates,   §   1729. 
Unearned  premium,  reserve,  §  1702. 

Rebating  and  discrimination  prohibited,  §   1782. 
Penalty,  §  1783. 

State  and  county  mutuals,   §   4,   Ch.   120,   39th  G.  A.     Page  63. 

Taxation   of  premium  income. 

Domestic  companies,  §   1333-d   (Miscl.  Sections).    Page  145. 

Foreign  companies,   §   1333    (Miscl.  Sections).     Page  143. 

Mutual  fire  and  casualty  companies,  §  20,  Ch.   42  9,   37th  G.  A. 
Page9. 

Pi'oceeds  of  Policy:  Life,  accident  and  health  insurance,  §  3313   (Miscel. 
Sections).     Page  140. 
When  death   or  disability  caused  by  beneficiary,   §    33  86    (Miscel. 
Sections).     Page  141. 

Pi'omotion  and  Organization  of  Domestic  Companies:  (See  Articles  of 
incorporation  and  capital  stock.) 

Sale  of  stock  with  policies  prohibited,  Ch.  181,  39th  G.  A.  Page 
109. 

Supervision  by  the  insurance  department,  Ch.  22  4,  39th  G.  A. 
Page  2. 

(For  specific  conditions  precedent  to  issuance  of  certificate  of  au- 
thority,  see  life,   other  than   life,   mutual  companies,   etc.) 

Proof  of  Loss: 

Life,  disability  insurance,   §   1820. 

Other  than  life,  §§  1742,  1742-a,  1744. 

State  and  county  mutuals,  §  6,  Ch.  120,  39th  G.  A.  Page  64. 

Proxies:      Solicitation  of  proxies,  §  1821-z. 
Vo,ting — conditions,    §    1821-x. 

Publications:      Certificate  of  compliance  to  be  published,  §  1737. 

Railway  Cori)orations :  Acceptance  of  insurance  shall  not  constitute  a 
bar  to  action  against  railway  for  negligence,  S  2071  (Miscl. 
Sections).      Page    140. 

Rebating  and  Discrimination:      Prohibited,  §  17  82. 
Penalty,    §   1783. 


INDEX  243 


H«ciprocals  or  Inter-lntersurance  Exchanges:      (All  section   references 

are  to  Ch.    180,   37th  G.  A.    (Mlscl.  Sections). 
Actions — venue — service  of  process — judgment,   §  4.     Page  134. 
Annual   statement,   §   7.      Page   136. 
Bonds  of  attorney,  §  12.     Page  137. 
Certificate  of  authority,  §   9.     Page   136. 
Examination  by  the  commissioner,  55   7.     Page  136. 
Execution  of  contract — place  of  business  of  attorney,   ^   2.      Page 

133. 
Form  of  contract,  approval  by  commissioner,  §   14.     Page  138. 
Laws  applicable,   §    16.      Page   138. 
Limitations  on  risks — report,  §   5.     Page  13  5. 
Penalty  for  violation  of  law,  §  10.     Page  136. 
Preliminary  showing,   §   3.      Page   133. 
Reciprocal  contracts  authorized,   §   1.      Page   133. 
Refusal  or  revocation  of  certificate  of  authority,  §   11.     Page  137. 
Reinsurance,   §   15.     Page  138. 

Service  of  notice  on  agent,   §   3  530    (Miscl.  Sections).     Page  14  2. 
Standard  of  solvency,  §  6.     Page  135. 
Taxes  and  fees,  §  13.     Page  13  7. 
Where  action  may  be   brought,    §    3499    (Miscl.   Sections).      Page 

141. 

Reinsurance:      (See  also  consolidation). 
Life,    §    1821-n. 

Other  than  life,   §§   1711.      (1710). 
Reciprocals,   §   15,   Ch.   180,    37th  G.   A.    (Miscl.   Setcions).     Page 

138 
State  and   county  mutuals,   §   1,  Ch.   120,   39th  G.  A.      Page   62. 
With  unauthorized  companies — prohibited,   §    1821-s. 

Religious  Societies:      May  comply  with  chapter   9,   §    1822-a. 

Reserves : 

Fraternals,  §  1822. 

Child  insurance,   §   1822. 
Life  companies — valuation  of  policies — deposit,   §   17  74. 
Other  than  life,  §  1702. 

Reciprocals,  §  Ch.   180,   37th  G.  A.   (Miscl.  Sections).     Page  135. 
State  and  county  mutuals,  §   4,  Ch.   120,  39th  G.  A.     Page  63. 

Retaliation:       (Law   of   other    states). 
Life  insurance  companies,  §  1810. 
Other  than   life   insurance  companies,    §    1736. 

Service  of  Notice,  on  Agent,   §   3530    (Miscl.   Sections).     Page   142. 
For   service   on   commissioner  of  insurance,   see   'Power  of   Attor- 
ney.' 

School  Boards:      May   insure   school   property — payment   from   contin- 
gent  fund,    §    2783    (Miscl.   Sections).      Page   140. 

Short  Rate  Table,  §  1729   (For  table,  see  appendix). 

State  and  county  Mutuals:      (Section  reference  to  Ch.  120,  39th  G.  A.) 
Agents,   §   15.      Page   67. 

Penalty   for   acting   without  license,   §    15.      Page    67. 
Annual   meeting,   §   11.      Page   66. 
Annual   statement,   §    5.      Page    64. 

Articles  and  by-laws — approval  by   commissioner,   §   3.      Page   62. 
Bonds  of  officers — approval  by  commissioner,  §  10.     Page  66. 
Cancellation  of  policy.  §   9.      Page  65. 
Certain  terms  to  be  incorporated  in  name,  §  2.     Page  62. 


244  INDEX 

Conditions  precedent  to   issuance  of  certificate  of  authority,   §   3. 

Page    62. 
Consolidation — state  mutuals,   §§   1821-r-s-t-u. 
Creation  of  emergency  fund,   §   4.     Page   64. 
Defined,   §  2.     Page  62. 
Dissolution,    §    8.     Page   65. 
Evidence  of  value,   §   7.      Page   65. 
Examination,   §  12.     Page  67. 
Pees,   §   14.     Page  67. 

Inquiry  by  the  commissioner,   §   8.      Page   65. 
Investments,   §  4.     Page  63. 

Kinds   of  insurance   authorized,    §    1.      Page   62. 
Level  premium  policy,   §   4.      Page  6  3. 
Limitation. of  actions,  §   6.     Page   64. 
Maximum  liability  of  members,   §   4.     Page  63. 
Maximum  risks,  §   3.     Page  62. 
Method  of  doing  business,  §  4.     Page  63. 
Notice  of  loss,   §  6.     Page  64. 
Policy  form. 

What  to  contain,  §  1.  Page  62. 

Approved  by  the  commissioner,   §   3.     Page  62. 
Proof  of  loss,  §   6.     Page   64. 
Reinsurance  authorized,  §   1.     Page  62. 
Reserves,   §   4.     Page   63. 
Taxes,  §   12.     Page  67. 
Voting  by  Proxies — state  mutuals,  §§  1821-x-y-z. 

Stock  Companies: 

Life  companies. 

Accident   and    health   and   liability   insurance,   separate   depart- 
ment,  §   1783-d. 

Advertisen^ents — authorized     capital — may     not     advertise,      § 
1783-1. 
Who  deemed  agents,  §  1815. 

Agents'  certificates,  §  1800. 
Penalty,  §§  1801,   1802. 

Amortization   of  securities,   Ch.    198,   39th  G.  A.      Page   80. 

Annual  certificates,   §  1775. 

Annual   report — convention   form^   §    182  0-d. 

Annual  statement,   §§    1773,   1799. 
Penalty,  §§   1801,  1802. 

Application — copy   attached   to    policy,    §    1819. 

Approval  of  articles  and  amendments,   §   1768. 

Approval  of  policies,   §   1783-a. 

Penalty  for   failure  to  file,    §   1783-c. 

Change  in  securities,   §   1779. 

Commissioner's  annual  report,  §   1781. 

Certificate  of  authority,   §    176  9. 

Conditions  precedent  to   incorporation,   §   176  8. 

Conditions  precedent  to  doing  business,  §  1769. 

Consolidation,    §§    1821-n-o-p-q-s-t-u. 

Conspiracy   to    defraud,    §    1817. 

Defenses  to  action  on  policy,   §   1811. 

Deposit,  §  1774. 

Discrimiination    and   rebating,    §    1782. 

Disbursements — domestic  companies,   §   182  0-a. 

Dissolution,   §§   1776,    1777. 

Examination,   §  1777. 

Failure  to   deposit  or   file  statement,   §    177  6. 

Fees,  §  1818. 

Fraud  in  procuring  insurance,   §  1816. 


INDEX  24f 


Group  accident  and  health   insurance  authorized,   §   17  83-d. 
Group    life    insurance    authorized — conditions,    Ch.    19  7,    38th 

G.  A.     Page  77. 
Illegal  business,   §   1814. 
Industiial   insurance  authorized,   §   17  83-b. 
Interest   collected,   S    17  80. 
Investment  of  funds,   §   1806 

Capital   and  surplus. 

Donxestic  companies,   §   17G9.  ' 

Foreign  companies,  §   1772. 

Land  and   buildings,   §    1807. 

Real  estate,    §§    1803,   1806. 

When   to  be   sold,    §    1804. 
Limitations  of  actions,  §  1820. 
Medical  examination,  §  17  83-b. 
Misrepresentation   of  age,   §    1813. 
Misrepresentations  prohibited,   §   1820-b, 

Penalty,   §    1820-c. 
Physician's  certificate,   §   1812. 
Policies  exempt  from  execution,  §  1805, 

Power  to  hold  funds  in   trust,  Ch.   304,   38th   G.  A.      Page   79. 
Receiver,  §   1777. 

Retaliation — laws  of  other  states,  §   1810. 
Securities  of  defaulting  or  insolvent  companies,  §  1778. 
Service  of  process,  §§  1808,  1809. 
Valuations  of  policies,   §   1774. 

Other  than  life  companies. 

Additional  riders  and  clauses  permitted,   §   17;j8-a. 

Advertisements,  §  1749. 

Agent  must  have  certificate,   §   1725. 

Resident  agent — foreign  company,   §   173  9. 
Penalty,    §    1740. 

Soliciting  agents  defined,  §   1749. 

Who  deemed  agents,  §  1750. 
Annual  meetings,   §   1696. 
Annual  statement,   §  1714. 

Printed  form,  §  1719. 
Application — copy  to  be  attached   to  policy,   §   1741. 
Approval  of  policy  forms,  §   1745. 
Arbitration,   §    174  3. 
Cancellation  of  policy,   §   1728. 
Capital  stock,   §§    1691,   1783-e. 

Foreign    companies,    §    1721. 

Fully  paid  up,   §   1783-e. 

Increase  in,  §   1783-e. 

Not  to  be  loaned  to  officers  or  stockholders,   §   1783-e. 

Statement  of — foreign  fire  companies,  S   17.'5!». 
Penalty,  §   1740. 
Certificate   of   compliance — publication,    ^i    1737. 
Certificate — foreign    companies,    >$    1724. 

Revocation  of,  §   1735. 
Co-insurance,   §   1746. 
Combinations  and  agreements,   §   1754. 
Consolidation,    §>i    1821-r-s-t-u. 
Directors — election    of,    5{    1696. 
Dissolution — after  examination,  S   1731. 
Dividends,   §   1702. 
Doing  business  without  compliance.   Jj   1747. 

Officers  punished.  §  1748. 
Evidence  of  value,  §  1742. 


246  INDEX 


Examinations,   §1700. 

Foreign  companies,  §   175  3. 

Evidence,   §   1757. 

Expenses,   §   1753. 
False  statements  of  assets — fire  companies,  §   1738. 

Penalty,   §    1740. 
Fees,  §  1752. 

Forfeiture   of   policy,    §    172  7. 
Inquiry  by  commissioner,   §   1718. 

Insurance   authorized,    §    1709    (See   insurance   authorized). 
Insurance  notes,   §   172  6. 
Investment  of   funds,   §    1699. 

Real   estate,    §    1703. 
Kinds  of  risks — combinations  permitted,   §    1710. 
Maximum   risks,   §    1710. 

Management  of  companies — directors,   1695. 
Misleading   statements,    §    1758-f. 

Penalty,   §   175 8-g. 
Notice   of  loss,   §    1744. 
Policy  conditions,   generally,   §    1743. 
Policy   form — approval   of,    §    1745. 

Must  indicate  whether  stock  or  mutual  company,  §  1689. 

Seal,  §  1712. 

Signatures,  §  1712. 
Policy  must  appear  in  the  name  of  issuing  company,   §  1758-e. 
Policy  restored — payment  of   sum   due,   §    1730. 
Proof  of  loss,   §§   1742,   1742-a,   1744. 
Reinsurance,   §   1711. 
Release  from  liability  as  surety,  §  361   (Miscl.  Sections).     Page 

139. 
Requisition  on  stockholder,    §   1732. 
Reserves,  §  1702. 

Retaliation,  laws  of  other  state,  §  17  36. 
Revocation   of  authority,    §    175  5. 

Appeal,   §   1756. 
Short  rate  table,   §   1727. 
Standard  fire  policy,   §  1758-b. 

Failure  to   use,   §   1758-c. 
Suit  on   bond  of  guarantee   company,    §    3  62    (Miscl.   Sections). 

Page  139. 
Surplus,  §  1783-e. 

Time  for  bringing  action,   §   1744.  ^ 

Transfer   of   stock,    §    1713. 

Pending  investigation,    §    1734. 
Unauthorized   companies — insurance    in,    ?!    17  58. 
When    guarantee   company   may   be   accepted   as   surety,    §    360 

(Miscl.   Sections).      Page  138. 

Provisions  of  general  applicability. 
Agents'   licenses,   §§    1821-k,    1821-1. 
Applicability  of  chapter  8-a,  §  1821-i. 
Biennial  examination,   §   1821-a. 

Companies  to  assist,   §   1821-b. 

Expenses,   §  1821-c. 

Non-resident  companies,  §  182 1-h. 

Publication   of   results,    §    1821-d. 

Refusal  to  be  examined,  §  182 1-g. 
Funds  not  to  be  loaned  for  profit  of  officers  or  directors,  §  13, 

Ch.   348,   38th  G.   A.    (Miscl.   Sections).     Page   133. 
Officers  and  directors  shall  not  profit  from  investments,   §    13, 

Ch.   348,  38th  G.  A.    (Miscl.  Sections).     Page  133. 


INDEX  247 

Promotion  and  organization  of  companies,  Ch.  224,   39th  G.  A. 

Page    2. 
Proportionate  representation,   §§   1821-v-w. 
Revocation  of  certificate  of  authority,  ^  1821-d. 
Sale   of    stock    with    policies    prohibited,    Ch.    181,    39th    G.    A. 

Page  109. 
Service  of  notice  on  agents,  §  3530  (Miscl.  Sections).     Page  142. 
Soliciting  business   after  revocation   of  authority,   §    1821-f. 
Taxation. 

Domestic  companies,   §   1333-d   (Miscl.  Sections).     Page  145. 

Foreign  companies,  §   1333    (Miscl.  Sections).     Page  14  5. 
Transfer  of  stock  pending  examination,   §    182 1-e. 
Voting   by   proxies,    §§    1821-x-y-z. 
Where  action  may  be  brought,  §  3499    (Miscl.  Sections).     Page 

141. 

Stockliolders : 

Other   than   life   insurance   companies. 
Annual   meeting,    §    1696. 
Deficiency  in  capital,   §   1731. 

Requisition — new   certificates,    §    1732. 
Election  of  directors,   §  1695 
Subscription   to   stock,    §    1694. 
Transfer  of  stock,  §  1713. 

Pending  investigation,  liability,  §   1734. 
Provisions  of  general  applicability. 

Loans  of  capital  to,  prohibited,  §   17  83-e. 

Violation,   penalty,   §   1783-h. 
Minority  representation  on  board  of  directors,  §  1821-v. 
Notice   of  sale  of  stock   for  taxes,   §   1333-a. 
Proxies,  §  1821-x. 

Solicitation  by  agents,    forbidden,    §    1821-y. 

Violation,  penalty,   §  1821-z. 
Reinsurance  consolidatioti — violation  of  the  provisions,  §  182 1-u. 

Suit  or  Actions: 

Fraternals — where   suable,   §    1827. 

Guarantee    companies — suit   on    bonds,    §    362    (Miscl.    Sections). 

Page   139. 
Life  companies. 

Copy  of  application,   §   1819. 

Defenses  to  actions  on  policies,  §  1811. 

Limitations  of  actions,   §    1820. 

Misrepresentation   of   age,    §    1813. 

Physician's  certificate,   §   1812. 
Other  than  life  companies — time  for  bringing  suit,  §   17  44. 
Reciprocals — venue — service  of  process — Judgment,  §  4,  Ch.  ISO, 

37th  G.   A.    (Miscl.   Sections).      Page   134. 
Service  on  agent,   §   3530    (Miscl.   Sections).      Page   142. 
Service  of  process,  see  power  of  attorney. 
State  and  county  mutuals — time  for  bringing  suit,   §   6,  Ch.   12  0, 

39th  G.  A.  Page   64. 
Where  suit  may  be  brought,  §  3499   (Miscl.  Sections).     Page  141. 

Surplus : 

Amount  required   for   admission — foreign   mutual   life   companies, 

§  1772. 
Amount   required   for  admission — foreign   mutual   other   than   life 

company,  §  1723. 
Amount  required  for  admission — other  than  life  stock  company,  § 

1783-e. 


248  INDEX 


Amount   required   for   mutual   other   than    life   company  to  write 

level  premium  policies,   §   5,  Ch.  429,   37th  G.  A.     Page  8. 
Investments — see    funds    of    comt)anies. 

Taxation  of  Insurance  Com,panies: 

Domestic  companies,   §   1333-d    (Miscl.  Sections).     Page  145. 

Fraternals  and  county  mutuals  exempt,   ibid. 

Fraternals    exempt    from    taxation,    §    1304     (Miscl.    Sections). 
Page  139. 
Foreign  companies,  §   1333.     Page  143. 

Assessment   associations   and   fraternals   exempt   from   taxation, 
ibid. 
Laws  of  other  states — retaliation,    §§    1736,    1810. 
Mutual,   fire  and  casualty  companies,   §    20,   Ch.   429,    37th   G.  A. 

Page  9. 
Payment  from  surplus  or  emergency  fund,  §  1821. 
Reciprocals,   §   13,   Ch.    180,   37th  G.   A.    (Miscl.   Sections).      Page 

137. 
State  and  county  mutuals,  §  12,  Ch.  120,  39th  G.  A.,  Page  67. 
Statement  to  be  furnished  local  assessor,   §   1333-b-      (Miscl.  Sec- 
tions).    Page  14  4. 

Valuation  of  property  by  assessor,   §   1333-c    (Miscl.   Sections). 
Page  145. 

Unauthorized  Insurance : 

Consolidation  with  unauthorized  company,  §  182 1-s. 

Other  than  life  insurance,   §  1758. 

Soliciting   business   after   revocation   of   authority,    §    1821-f. 

Waiver  of  Interest  for  Insured:      Other  than  life  insurance,   §  1758-d. 

Workmen's  Compensation:       (Appendix). 

General  provisions,  Ch.  8-a,  title  XII,  §§  2477-m,  2477-m51. 
Insurance  provisions   (for  provisions  applicable  to  companies  writ- 
ing  this  insurance,   see   other   than   life  insurance   companies.) 
Agents'  commissions  limited,   §   2477-m46. 
Authorized — other  than  life,  sub-section  5,  §  1709. 

Life — conditions,   1783-d. 
Benevolent   insurance — plan — approval,   §   2477-m43. 

Certificate  of  approval — industrial  commissioner,  §  2  477-m44. 

Revocation  of  certificate,  §  2  4  77-m4  5. 

Termination    of    certificate,    §    24  77-m!4  5. 
Failure  to  insure,   §  2477-m41. 

Notice  to  employees,  ibid. 
Insurance  of  liability,   §   24  77-m41. 
Lien  of  insured  against  employer,  §  2477-m48. 
Mutual  companies — conditions  of  authorization,  §  2  4  77-m42. 
Policy  requirements,   §  2477-m47. 

Insolvency  clause  prohibited,   §   24  77-m4  8. 
Release  from  act — proof  of  solvency,  §   2477-ni49. 

Deposit  of  security,  ibid. 
Revocation  of  approval,   ibid. 
When  law  applicable,   §   2477-m51. 


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